What was the net goodwill balance for Caption By Hyatt as of January 1, 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at January 1, 2023 | |
|---|---|
| Goodwill $ 1,465 $ 210 $ 1,589 $ 2 $ — $ 3,266 | |
| Accumulated impairment losses (4) (161) — — — (165) | |
| Goodwill, net $ 1,461 $ 49 $ 1,589 $ 2 $ — $ 3,101 | |
| Activity during the year | |
| Additions 62 — 39 — — 101 | |
| Foreign currency translation | |
| adjustments 3 — — — — 3 | |
| Balance at December 31, 2023 | |
| Goodwill 1,530 210 1,628 2 — 3,370 | |
| Accumulated impairment losses (4) (161) — — — (165) | |
| Goodwill, net $ 1,526 $ 49 $ 1,628 $ 2 $ — $ 3,205 | |
| Activity during the year | |
| Additions 86 — — — 336 422 | |
| Disposals — — (914) — — (914) | |
| Impairment losses (110) (15) (38) — — (163) | |
| Measurement period adjustments | |
| (Note 7) — — (1) — — (1) | |
| Foreign currency translation | |
| adjustments (7) — — — (1) (8) | |
| Balance at December 31, 2024 | |
| Goodwill 1,609 210 713 2 335 2,869 | |
| Accumulated impairment losses (114) (176) (38) — — (328) | |
| Goodwill, net $ 1,495 $ 34 $ 675 $ 2 $ 335 $ 2,541 |
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the net goodwill balance as of January 1, 2023, was $3,101. This figure represents the initial goodwill ($3,266) less accumulated impairment losses ($165) at that date. Goodwill, in accounting terms, typically arises when a company acquires another company for a price higher than the fair market value of its net assets. It represents intangible assets like brand reputation and customer relationships.
For a prospective Caption By Hyatt franchisee, understanding the goodwill balance can provide insight into the financial health and acquisition history of the franchisor. A significant goodwill balance might indicate previous acquisitions or mergers, which could have implications for the brand's strategy and resources. However, it's essential to note that goodwill is an intangible asset and its value can fluctuate over time, especially if there are impairment losses.
The FDD also details changes to the goodwill balance during 2023 and 2024, including additions, foreign currency translation adjustments, disposals, impairment losses, and measurement period adjustments. These changes reflect the ongoing financial activities and valuations related to Caption By Hyatt's intangible assets. Monitoring these changes over time can help franchisees assess the stability and potential risks associated with the brand's financial performance.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of goodwill and other financial statement items presented in the FDD. This will help them make informed decisions about investing in a Caption By Hyatt franchise.