How often does Carbones Pizzeria evaluate the net realizable value of long-lived assets?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company periodically evaluates the net realizable value of long-lived assets, including property and equipment, and intangible assets, relying on a number of factors including operating results, business plans and economic projections, and anticipated future cash flows. An impairment in the carrying value of an asset is recognized when the fair value of the asset is less than its carrying value.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company periodically evaluates the net realizable value of its long-lived assets. These assets include property, equipment, and intangible assets. This evaluation considers factors such as operating results, business plans, economic projections, and anticipated future cash flows.
For a prospective Carbones Pizzeria franchisee, this means that the franchisor assesses the value of its assets on a regular basis to ensure they are accurately reflected on the company's balance sheet. This process helps in making informed financial decisions and provides transparency regarding the financial health of the company.
If the fair value of an asset is less than its carrying value, Carbones Pizzeria recognizes an impairment in the carrying value of that asset. This indicates that the company is proactive in identifying and addressing potential losses in asset value, which can impact the overall financial stability of the franchise system.