What was the net amount of total intangible assets for Brueggers Bagels as of December 31, 2024?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
al years ended December 31, 2024, December 26, 2023, and December 27, 2022.
5. Intangible Assets and Liabilities
Intangible assets and liabilities consist of the following (in thousands):
| As of December 31, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 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 | (9,295) | $ | - | |||||
| Tradename (Manhattan Bagel) | 3,700 | (3,700) | $ | - | |||||
| Reacquired franchise rights | 957 | (949) | $ | 8 | |||||
| Franchise agreements | 35,470 | (35,396) | $ | 74 | |||||
| K-cup coffee supply agreement | 4,800 | (4,800) | $ | - | |||||
| Concession agreement | 10,900 | (6,495) |
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 31, 2024, the net amount of total intangible assets was $461,987. This figure is derived from the sum of intangible assets not subject to amortization, such as tradenames, and intangible assets subject to amortization, including customer relationships, tradenames (Manhattan Bagel), reacquired franchise rights, franchise agreements, K-cup coffee supply agreements, and concession agreements. The tradenames not subject to amortization had a net amount of $457,500. The total intangible assets subject to amortization had a net amount of $4,487.
Intangible assets are non-physical assets that can provide long-term value to Brueggers Bagels. These assets are typically recorded on the balance sheet and can include items like brand recognition, customer relationships, and intellectual property. Some intangible assets, like tradenames, are not amortized, meaning their value is not gradually reduced over time. Others, like customer relationships and franchise agreements, are amortized over their useful life, reflecting the gradual decline in their value.
For a prospective Brueggers Bagels franchisee, understanding the composition and value of these intangible assets is crucial. A strong brand name and established customer relationships can contribute significantly to the success of a franchise location. The amortization of certain intangible assets also impacts the financial statements, affecting profitability and potentially influencing investment decisions. Reviewing these figures allows potential franchisees to assess the overall financial health and stability of Brueggers Bagels.