What was the net value of Big Blue Swim School's software as of December 31, 2024?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Costs for software developed for internal use are accounted for in accordance with FASB ASC 350, Intangibles - Goodwill and Other - Internal-Use Software. FASB ASC 350 requires the capitalization of certain costs incurred in connection with developing or obtaining internal-use software. Client-related costs capitalized in accordance with FASB ASC 350 are included in deferred contract costs, while capitalized costs for internal-use software are included in software -net in the accompanying balance sheets. The Company amortizes the costs of software obtained or developed for internal use over five years.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 FDD, Big Blue Swim School capitalizes certain costs related to software development for internal use, following FASB ASC 350 guidelines. These costs are then included as "software -net" on the balance sheets. The company amortizes these software costs over a period of five years. Unfortunately, the exact net value of the software as of December 31, 2024, is not specified within the provided excerpts.
While the FDD discusses the accounting policies related to software and how its costs are handled, it does not provide the specific financial figure for the net software value. This information would typically be found in the balance sheets within the financial statements, but those specific details are not included in the provided documentation.
A prospective Big Blue Swim School franchisee would need to review the complete audited financial statements for the year ending December 31, 2024, to determine the net value of the software. This information is crucial for understanding the company's asset values and overall financial health. It is recommended that a potential franchisee request these financial statements from the franchisor during their due diligence process.