What was the total depreciation and amortization expense for Big Blue Swim School in 2022?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Software | $ 532,435 | $ - |
| Less: accumulated amortization | 64,249 | - |
| Software, net | $ 468,186 | $ - |
Amortization expense amounted to $64,249 for the year ended December 31, 2024. The
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to Big Blue Swim School's 2025 Franchise Disclosure Document, the amortization expense for the year ending December 31, 2022, was $0. For the year ending December 31, 2023, the amortization expense was also $0. However, for the year ending December 31, 2024, the amortization expense increased to $64,249.
This information is relevant for prospective franchisees as it provides insight into the company's expenses over the past few years. While there was no amortization expense in 2022 and 2023, the increase in 2024 suggests potential changes in the company's assets or accounting practices. Amortization typically reflects the expense associated with using intangible assets like software or licenses over time.
For a potential Big Blue Swim School franchisee, understanding these expenses can help in forecasting the financial performance of their own franchise. It's important to note that while the FDD provides historical data, future expenses may vary based on factors such as the franchisee's specific location, assets, and operational strategies. Therefore, it would be prudent for a prospective franchisee to discuss these trends with the franchisor and seek professional financial advice to assess the potential impact on their investment.