What was the total amount of other intangible assets, net, 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 agre |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the company's total other intangible assets, net, amounted to $4,487 as of December 31, 2024. This figure represents the value of intangible assets subject to amortization, such as customer relationships, tradenames (specifically Manhattan Bagel), reacquired franchise rights, franchise agreements, a K-cup coffee supply agreement, and a concession agreement, after accounting for accumulated amortization. These assets are initially recorded at their gross carrying amount and then reduced over time as they are amortized.
For a prospective Brueggers Bagels franchisee, understanding the composition and net value of these intangible assets is important. Intangible assets like franchise agreements and tradenames contribute to the brand's overall value and recognition. The net value reflects the remaining economic benefit that Brueggers Bagels expects to derive from these assets. The fact that these assets are being amortized indicates that their value is being recognized as an expense over their useful lives.
The specific intangible assets listed, such as the K-cup coffee supply agreement and concession agreement, suggest potential revenue streams or operational advantages for Brueggers Bagels. The values associated with reacquired franchise rights and franchise agreements could indicate the company's strategy in managing its franchise network. Monitoring these assets and their amortization can provide insights into the long-term financial planning and asset management practices of Brueggers Bagels.
It is worth noting that the tradenames, with a net value of $457,500, are classified as intangible assets not subject to amortization, implying that Brueggers Bagels believes these assets have an indefinite life and will continue to provide value indefinitely. This is in contrast to the other intangible assets, which are being amortized over a defined period. The total intangible assets, including both amortized and non-amortized assets, amounted to $461,987 as of December 31, 2024.