What was the reported total value of other assets (goodwill) for Browns Chicken in 2024?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
GOODWILL
Goodwill represents the excess of cost over the fair value of net assets acquired in business combinations. Goodwill and indefinite-lived intangible assets are not amortized but are reviewed at least annually for impairment and whenever there is an impairment indicator, using a fair-value based approach. The Company conducts its annual impairment evaluation in the fourth quarter of each year. No impairment was indicated for the years ended December 31, 2024 and 2023. The recoverability of goodwill is measured using a two-step process. Step one of the test compared the fair value of each reporting unit to its book value. Step two, which compares the book value of the goodwill to its implied fair value, was not necessary since there were no indicators of potential impairment from step one.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, goodwill represents the excess of cost over the fair value of net assets acquired in business combinations. Browns Chicken reviews goodwill and indefinite-lived intangible assets at least annually for impairment. The FDD states that no impairment was indicated for the years ended December 31, 2024 and 2023.
The recoverability of goodwill is measured using a two-step process. The first step compares the fair value of each reporting unit to its book value. The second step, which compares the book value of the goodwill to its implied fair value, was not necessary since there were no indicators of potential impairment from step one.
While the FDD discusses how Browns Chicken assesses goodwill, it does not provide the actual total value of goodwill reported on the balance sheet for 2024. A prospective franchisee should ask Browns Chicken for a copy of the complete audited financial statements, including the balance sheets, to determine the value of goodwill and other assets.