What is the useful life in years that Canine Dimensions uses to depreciate its automobile fixed asset?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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' 2025 Franchise Disclosure Document, the company depreciates its automobile fixed assets over a useful life of five years. This is done using the straight-line depreciation method.
For a prospective franchisee, this means that if Canine Dimensions owns a vehicle, it will spread the cost of the vehicle over five years for accounting purposes. The straight-line method means an equal amount of depreciation expense is recognized each year. This is a standard accounting practice that allows Canine Dimensions to match the expense of the asset with the revenue it generates over its useful life.
It's important to note that this depreciation policy applies to Canine Dimensions Franchising, LLC itself. Franchisees will need to establish their own depreciation policies for any vehicles or other fixed assets they acquire for their individual businesses, in accordance with generally accepted accounting principles and tax regulations.