What was the net value of Boulder Designs' acquired franchise agreements in 2024?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ess of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Jugare, Resonaire, Boyd o Thomas . I.C.
Balance Sheets
December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $ 97,522 | 151 |
| Franchise fees receivable, net | 397,028 | 553,156 |
| Inventory | 143,358 | 133,159 |
| Deferred costs | 67,562 | 87,322 |
| Total current assets | 705,470 | 773,788 |
| Equipment | 183,787 | 174,927 |
| Less: accumulated depreciation | 125,062 | (99,331) |
| Equipment, net | 58,725 | 75,596 |
| Other assets: | ||
| Deferred costs, excluding current portion | 158,796 | 214,248 |
| Other receivables | 4,500 | 1,568 |
| Acquired franchise agreements, net | 563,824 | 576,824 |
| Total assets | $1,491,315 | 1,642,024 |
| Liabiliti |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the net value of acquired franchise agreements as of December 31, 2024, was $563,824. This figure represents the value of franchise agreements that Boulder Designs has acquired, taking into account any amortization or impairment.
For a prospective franchisee, this number provides insight into the company's investment in acquiring existing franchise agreements. It can reflect Boulder Designs' strategy for growth and market presence. A significant value in acquired franchise agreements might indicate that Boulder Designs is actively expanding by purchasing existing operations rather than solely relying on the sale of new franchises.
It's also important to note that the value of acquired franchise agreements can be subject to impairment losses, as indicated in the cash flow statement. An impairment loss of $28,000 was recorded in 2024. This means that Boulder Designs recognized a decrease in the value of these agreements during the year, which could be due to various factors such as underperforming locations or changes in market conditions. This is a risk factor to consider, as the value of these agreements is not guaranteed and can fluctuate.
Comparing the 2024 value of $563,824 to the 2023 value of $576,824 shows a slight decrease in the net value of acquired franchise agreements. This decrease could be due to amortization, impairment losses, or the disposal of some agreements. A prospective franchisee should inquire about the specific factors contributing to this change to better understand the performance and management of these assets.