What was the amount of amortization for Body Brain Center in 2024?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Goodwill is not amortized but tested at least annually for impairment. To determine whether goodwill is impaired, annually or more frequently if needed, the Company performs a multi-step impairment test. The Company may first assess qualitative factors to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements for Body Brain Center do not explicitly state the amount of amortization expenses for the year 2024. However, the document does mention that goodwill is not amortized but is tested at least annually for impairment. This suggests that Body Brain Center follows the accounting principle of not amortizing goodwill, which is a common practice.
While the FDD does not provide a specific amortization figure, it does detail several related-party transactions and expenses. These include advertising fund fees, software service agreements, operating lease agreements, and management services agreements with Body & Brain Yoga and Health Centers, Inc. In 2024, these expenses amounted to $58,783 for advertising fees, $4,800 for software services, $9,600 for operating leases, and $18,000 for management services. These figures offer insight into the operational expenses of Body Brain Center, but they do not clarify the amortization expenses.
Given the absence of a specific amortization figure in the provided excerpts, it would be prudent for a prospective franchisee to directly inquire with Body Brain Center about their amortization practices and expenses. Understanding these expenses is crucial for assessing the overall financial health and profitability of the franchise. Specifically, a potential franchisee should ask about any amortized assets other than goodwill, such as software or leasehold improvements, and request a breakdown of these expenses for the most recent fiscal year.