How does Bw Premier Collection amortize goodwill, and over what period?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company amortizes goodwill on a straight-line basis over a ten-year useful life. This means that the cost of goodwill, which arises from business combinations and represents the excess of the cost of an acquired entity over the net fair value of acquired assets and assumed liabilities, is evenly expensed over a decade.

For a prospective Bw Premier Collection franchisee, understanding goodwill amortization is crucial for assessing the financial health and stability of the franchisor. The FDD indicates that goodwill is tested for impairment if circumstances suggest its carrying value exceeds its fair value, which could impact the company's financial statements. This amortization is reflected in the Consolidated Statements of Financial Position under other assets.

Furthermore, Bw Premier Collection also amortizes other intangible assets like acquired customers and developed technologies using the straight-line method, but over a period ranging from 7.5 to 10 years, depending on the asset type. Trademarks and trade names, however, are considered indefinite-life assets and are not subject to amortization, provided there are no foreseeable limits to the cash flows they generate. This approach aligns with standard accounting practices, where indefinite-lived assets are tested for impairment rather than amortized.