What was the net value of fixed assets for Canine Dimensions in 2022 after accounting for accumulated depreciation?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | 2023 | 2022 |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | 406,640 | 245,263 |
| FIXED ASSETS | ||
| Automobile | 31,923 | 31,923 |
| Less: Accumulated Depreciation | (23,271) | (19,200) |
| Net Fixed Assets | 8,652 | 12,723 |
| OTHER ASSETS | ||
| Franchise Costs | 40,329 | 40,329 |
| Security Deposit | 9,800 | - |
| Total Other Assets | 50,129 | 40,329 |
| TOTAL ASSETS | 465,421 | 298,315 |
| LIABILITIES AND MEMBER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Deferred Revenue - Initial Fee, Current | 21,000 | 17,500 |
| Deferred Revenue - Renewal Fee, Current | 700 | 700 |
| TOTAL CURRENT LIABILITIES | 21,700 | 18,200 |
| LONG TERM LIABILITIES | ||
| Deferred Revenue - Initial Fee, Long Term | 100,625 | 90,125 |
| Deferred Revenue - Renewal Fee, Long Term | 2,012 | 2,712 |
| TOTAL LONG TERM LIABILITIES | 102,637 | 92,837 |
| TOTAL LIABILITIES | 124,337 | 111,037 |
| MEMBER'S EQUITY | 341,084 | 187,278 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | 465,421 | 298,315 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the net value of fixed assets in 2022 was $12,723. This figure represents the value of Canine Dimensions' fixed assets, specifically an automobile, after accounting for accumulated depreciation. The automobile was originally valued at $31,923, and the accumulated depreciation was $19,200.
Fixed assets, like the automobile, are capitalized, meaning their cost is spread out over their useful life rather than expensed immediately. Canine Dimensions uses the straight-line depreciation method over five years, meaning the same amount of depreciation expense is recognized each year. This method provides a consistent and predictable way to account for the decline in value of the asset.
For a prospective franchisee, understanding how Canine Dimensions accounts for fixed assets and depreciation can be helpful in assessing the company's financial health and stability. It also provides insight into how the company manages its assets and expenses, which can be an important factor in evaluating the overall franchise opportunity. Reviewing these figures over several years can reveal trends in asset management and capital investment.