Under what conditions does Brightstar Care evaluate its property and equipment for impairment?

According to Brightstar Care's 2025 Franchise Disclosure Document, the company assesses its property and equipment for impairment when events or changes in circumstances suggest that the carrying amount of the assets may not be recoverable. This means that if there are indicators that the recorded value of the property and equipment on the balance sheet is higher than what the company could realistically recover from their use or sale, an evaluation is triggered.

An impairment loss is recognized if the estimated undiscounted future cash flows expected from the use of the asset and its eventual disposition are less than its carrying amount. In simpler terms, if the total cash the company expects to generate from using and eventually selling the property and equipment is less than the value recorded on the books, an impairment loss is recorded to reduce the asset's value to its recoverable amount.

The 2025 FDD states that Brightstar Care did not identify any impairment of its property and equipment as of December 29, 2024, or December 31, 2023. This indicates that, at those specific points in time, the company believed the recorded values of its property and equipment were supportable by their expected future cash flows. This type of evaluation is a standard accounting practice to ensure that assets are not overstated on a company's balance sheet.