What was the accumulated depreciation for property and equipment for Brain Balance in 2023?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment are summarized as follows: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Office equipment | $96,097 $ | 96,097 $ | 96,097 | |
| Computer equipment and software | 4,570 | 4,570 | 4,570 | |
| Total cost | 100,667 | 100,667 | 100,667 | |
| Accumulated depreciation | 100,667 | 100,667 | 97,352 | |
| Net property and equipment | $ | - $ | - $ | 3,315 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the accumulated depreciation for property and equipment as of 2023 was $100,667. This figure represents the total depreciation recognized on Brain Balance's property and equipment up to that point in time.
Accumulated depreciation is a contra-asset account that reduces the net book value of assets on a balance sheet. It reflects the wear and tear, obsolescence, or loss of value of those assets over their useful lives. For Brain Balance, this includes office equipment, computer equipment, and software.
Prospective franchisees should understand how Brain Balance accounts for depreciation, as it impacts the company's reported profits and asset values. Reviewing the depreciation methods and useful lives assigned to different asset categories can provide insights into the company's financial management practices. Additionally, comparing these figures across multiple years can reveal trends in capital expenditures and asset utilization.