What was the accumulated amortization for customer relationships at Brueggers Bagels as of December 26, 2023?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
t to amortization | | 65,122 | | (60,634) | $ | 4,487 | | | | | Total intangible assets | $ | 522,622 | $ | (60,634) | $ | 461,987 | | | |
5. Intangible Assets and Liabilities (continued)
| As of December 26, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Carrying Amount | Amortization | Accumulated | Net Amount | ||||||
| Intangible assets not subject to amortization: | |||||||||
| Tradenames | $ | 457,500 | $ | - | $ | 457,500 | |||
| Intangible assets subject to amortization: | |||||||||
| Customer relationships | 9,295 | (9,185) | 110 | ||||||
| Tradename (Manhattan Bagel) | 3,700 | (3,700) | - | ||||||
| Reacquired franchise rights | 957 | (913) | 44 | ||||||
| Franchise agreements | 35,470 | (33,414) | 2,056 | ||||||
| K-cup coffee supply agreement | 4,800 | (4,590) | 210 | ||||||
| Concession agreement | 10,900 | (5,9 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, as of December 26, 2023, the accumulated amortization for customer relationships was $9,185. This figure represents the total amount of amortization that has been recognized against the initial value of the customer relationship intangible asset up to that date. The gross carrying amount of customer relationships was $9,295, resulting in a net amount of $110.
For a prospective Brueggers Bagels franchisee, understanding amortization is crucial because it affects the reported value of assets on the balance sheet. Amortization reflects the expense recognized over time as the value of an intangible asset, like customer relationships, is used up. This accounting practice impacts the net value of these assets, which can influence the overall financial health and attractiveness of the franchise.
The FDD also lists other intangible assets subject to amortization, such as tradenames (Manhattan Bagel), reacquired franchise rights, franchise agreements, K-cup coffee supply agreements, and concession agreements. Each of these assets has its own gross carrying amount and accumulated amortization, which collectively contribute to the total intangible assets subject to amortization. Reviewing these figures provides a comprehensive view of how Brueggers Bagels manages and accounts for its intangible assets.
It's important for potential franchisees to consult with a financial advisor to fully understand the implications of these figures. Understanding the difference between the gross carrying amount and accumulated amortization helps in assessing the true value and potential risks associated with these assets. This due diligence is essential for making informed investment decisions when considering a Brueggers Bagels franchise.