How does Bw Premier Collection amortize other intangible assets?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
the Consolidated Statements of Financial Position.
Other intangible assets include acquired customers, developed technologies, and trademarks and trade names resulting from business acquisitions. Other intangible assets are valued based on their acquisition date fair values and, other than trademarks and trade names which are indefinite-lived, are amortized using the straight-line method over their estimated useful lives, ranging from 7.5 years to 10 years. Other intangible assets are included in other assets, net in the Consolidated Statements of Financial Position.
The Company evaluates the potential impairment of goodwill and other intangible assets annually. In evaluating these assets for impairment, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit or the intangible assets is less than its carrying amount. If the conclusion is that the fair value of the assets is not more likely than not less than its carrying value, then no further
November 30, 2024
testing is required.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company amortizes its other intangible assets using the straight-line method over their estimated useful lives, which range from 7.5 years to 10 years. These assets include acquired customers and developed technologies resulting from business acquisitions. Trademarks and trade names, however, are considered indefinite-life assets and are not subject to amortization, provided there are no legal, regulatory, contractual, competitive, economic, or other factors limiting their useful lives. These intangible assets are reported within other assets in the Consolidated Statements of Financial Position.
For instance, the trademarks and trade names acquired from WorldHotels were valued at $1.3 million as of November 30, 2024, and 2023, and are not amortized due to their indefinite life. In contrast, acquired customers and developed technology from AutoClerk are amortized over their estimated useful lives.
In practice, this means that Bw Premier Collection recognizes the cost of these intangible assets as an expense over a period of 7.5 to 10 years, reflecting the economic benefit derived from them. However, trademarks and trade names are not expensed unless their value becomes impaired, which is assessed annually. This accounting treatment can affect Bw Premier Collection's reported earnings and financial position, influencing how potential investors and franchisees might perceive the company's financial health and stability.