As of December 26, 2023, what was the net amount of reacquired franchise rights for Brueggers Bagels?
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 |
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 net amount of reacquired franchise rights was $44. This figure represents the value of franchise rights that Brueggers Bagels has reacquired, taking into account accumulated amortization. The gross carrying amount of these rights was $957, but after subtracting accumulated amortization of $913, the net amount is $44.
For a potential Brueggers Bagels franchisee, this indicates that the company does engage in reacquiring franchise rights, which could be due to various reasons such as franchisee default, mutual agreement, or strategic decisions by the company. The relatively low net amount suggests that these rights may be close to being fully amortized or are not a significant portion of the company's overall assets.
It's important to note that reacquired franchise rights are subject to amortization, meaning their value is gradually reduced over time. This accounting treatment reflects the diminishing economic benefit Brueggers Bagels receives from these rights as they age. Prospective franchisees may want to inquire about the circumstances under which Brueggers Bagels reacquires franchise rights and the company's policies regarding these reacquired rights.