What depreciation method does Carbones Pizzeria use for property and equipment?

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company uses the straight-line method to depreciate or amortize its property and equipment. The property and equipment include furniture, equipment, and vehicles, which are depreciated over a period of five to seven years. Leasehold improvements are depreciated over the shorter of the lease term or the life of the asset.

This means that Carbones Pizzeria allocates the cost of an asset evenly over its useful life. For a franchisee, understanding the depreciation method is important for financial planning and tax purposes. The straight-line method is a common and simple way to calculate depreciation, providing a consistent expense each year.

It is also important to note that Carbones Pizzeria periodically evaluates the net realizable value of long-lived assets, including property and equipment. This evaluation considers factors such as operating results, business plans, economic projections, and anticipated future cash flows. If the fair value of an asset is less than its carrying value, an impairment loss is recognized. This process ensures that the company's assets are accurately valued on its financial statements.