Over what period does Bw Premier Collection amortize goodwill?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
otal contract liabilities | $ 343,781 | $ 346,867 | The Company has elected the private-company alternative to amortize goodwill over 10 years. Amortization expense for goodwill was approximately $0.8 million and $0.8 million for the years ended November 30, 2024 and 2023, respectively, and is estimated to be approximately $0.8 million annually for fiscal years ended 2025 through 2028.
Acquired customers and developed technology are definite-life intangible assets, and as such, amortization expense is calculated using a method that most appropriately reflects expected cash flows from these assets with an amortization period, ranging from 7.5 years to 10 years, depending on the type of asset.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the company has elected to amortize goodwill over a period of 10 years. This means that when Bw Premier Collection acquires another business and records goodwill as an asset, it will systematically reduce the value of that goodwill on its financial statements over a 10-year period. This is done through regular amortization entries, which recognize the expense of the goodwill over its useful life.
For the fiscal years ended November 30, 2023 and 2024, the amortization expense for goodwill was approximately $0.8 million each year. Bw Premier Collection estimates that the amortization expense will remain around $0.8 million annually for the fiscal years ending 2025 through 2028. This consistent amortization expense indicates a steady and predictable reduction in the value of goodwill on the company's balance sheet.
In addition to goodwill, Bw Premier Collection also amortizes other intangible assets like acquired customers and developed technology. These assets have definite lives and are amortized using methods that reflect their expected cash flows, with amortization periods 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, as there is no foreseeable limit to the cash flows they generate.