How often does Body Brain Center test goodwill for impairment?

According to Body Brain Center's 2025 Franchise Disclosure Document, goodwill, which represents the excess of the amount paid by the company over the book value of assets purchased for a direct center, is not amortized. Instead, Body Brain Center tests it for impairment at least annually.

The FDD further explains that Body Brain Center may perform this impairment test more frequently than annually if needed. The company uses a multi-step impairment test to determine whether goodwill is impaired. As part of this process, Body Brain Center 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.

Alternatively, Body Brain Center can elect to skip the qualitative testing phase and proceed directly to quantitative testing. During quantitative testing, the company estimates the fair values of its reporting units using discounted cash flows, which involves making assumptions about internal and external factors. These assumptions include financial projections of free cash flow, long-term growth rates, and discount rates. Comparative market multiples are then used to corroborate the results of the discounted cash flow test. If the fair value is less than the carrying value, the implied value of goodwill is calculated and compared to the carrying amount to determine if impairment exists.