Did Canine Dimensions purchase an automobile in the year ended December 31, 2023?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3 Summary of Significant Accounting Policies (continued):
Fixed Assets
The Company capitalizes assets that have a useful life beyond one year. Fixed assets consist of an automobile that is recorded at cost and depreciated using primarily the straight line method over five years.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the company capitalizes assets with a useful life exceeding one year. The FDD states that Canine Dimensions' fixed assets consist of an automobile that is recorded at cost and depreciated using the straight-line method over five years.
Because the fixed assets include an automobile, this implies that Canine Dimensions owned at least one automobile as of the financial statement date. However, the provided excerpt does not specify whether Canine Dimensions purchased an automobile during the year ended December 31, 2023, or if the automobile was purchased in a prior year.
To determine if Canine Dimensions purchased an automobile during the year ended December 31, 2023, a prospective franchisee should review the detailed financial statements, specifically the statement of cash flows, for any cash outflows related to the purchase of fixed assets. Alternatively, they could directly ask the franchisor for clarification on when the automobile was acquired.