What was the net value of Carvel's intangible assets in 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
ificant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Atlanta, Georgia March 7, 2025
Consolidated balance sheets
| Assets | 2024 | 2023 | |
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ | 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 | |
| Accounts receivable, net of a |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the net value of their intangible assets was $496,479 as of December 29, 2024. Intangible assets primarily consist of tradenames and franchise agreements. Carvel does not amortize tradenames, but they are evaluated for impairment annually or more frequently if circumstances suggest potential impairment.
The evaluation process involves either a qualitative or quantitative assessment. If a qualitative assessment indicates that the fair value of a tradename exceeds its carrying value, no further evaluation is needed. If a quantitative assessment is performed and the fair value exceeds the carrying value, the tradename is not considered impaired. However, if the carrying value exceeds the fair value, an impairment charge is recorded for the difference.
Carvel estimates fair value using various valuation methodologies, including discounted cash flow models. The assumptions used in these models are generally consistent with past performance and current operating plans but are subject to change due to economic and competitive conditions. For the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022, no impairment losses were recorded for intangible assets.