What was the total value of Carvel's intangible assets, net, in 2023?
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 total value of intangible assets, net, was $495,389 in 2023. This figure represents the net value of assets that do not have a physical form but have value to the company, such as goodwill, tradenames, reacquired franchise rights, and franchise agreements.
For a prospective Carvel franchisee, understanding the composition and valuation of these intangible assets is crucial. These assets, particularly the brand's tradename and franchise agreements, contribute significantly to the brand's recognition and market position. The value of these assets can influence the overall financial health and stability of Carvel, which in turn can affect the franchisees' business operations and potential profitability.
It's also important to note that Carvel evaluates these intangible assets for impairment annually. While no impairment losses were recorded for goodwill, tradenames, or amortizable intangible assets during the fiscal years ended December 29, 2024 and December 31, 2023, a future impairment could signal underlying issues with the brand's performance or market conditions, which could impact a franchisee's investment. Therefore, monitoring the valuation and any potential impairments of these assets is an important aspect of assessing the long-term viability of a Carvel franchise.