How does Capriottis Sandwich Shop amortize intangible assets other than goodwill?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Intangible assets other than goodwill include a purchased trademark and franchise contracts stated at cost and amortized over 25 years using a method that is consistent with the assumptions used in estimating the fair values of the trademark and franchise contracts. In 2021, the Company also recognized the Wing Zone trade name and franchise agreements stated at the acquisition-date fair value and amortized over 15 years using a method that is consistent with the assumptions used in estimating the fair values of the trademark and franchise contracts as part of the business acquisition. This method results in proportionately more of the assets being amortized earlier in the life of the assets. The Company recorded no impairment for intangible assets for the years ended December 29, 2024 and December 31, 2023.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop amortizes intangible assets other than goodwill, which include purchased trademarks and franchise contracts, at cost over 25 years. The method used is consistent with the assumptions used to estimate the fair values of the trademark and franchise contracts.
In 2021, when Capriottis Sandwich Shop recognized the Wing Zone trade name and franchise agreements, these were stated at the acquisition-date fair value and are amortized over 15 years. This amortization also uses a method consistent with the assumptions used in estimating the fair values of the trademark and franchise contracts acquired.
The method used by Capriottis Sandwich Shop results in proportionately more of the assets being amortized earlier in the life of the assets. The company recorded no impairment for intangible assets for the years ended December 29, 2024 and December 31, 2023.