What was the total value of Carvel's intangible assets, net, as of December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
l 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 21, 2025
Consolidated balance sheets
| | December 29, 2024 | | | |-----------
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, as of December 29, 2024, was $306,188. This figure is part of Carvel's consolidated balance sheet, reflecting the net book value of assets like trademarks, franchise agreements, and other non-physical assets after accounting for amortization. For a prospective franchisee, this indicates the financial value Carvel places on its brand recognition and franchise system.
Intangible assets are significant for franchise systems like Carvel, as they represent the brand's market presence and the value of its franchise network. These assets are subject to impairment testing, as described in the FDD, which means Carvel periodically assesses whether the value of these assets has declined. No impairment losses were recorded for goodwill, tradenames, or amortizable intangible assets during the fiscal years ended December 29, 2024 and December 31, 2023.
Understanding the composition and valuation of these intangible assets can help a potential Carvel franchisee assess the stability and long-term prospects of the franchise. It's also worth noting that Carvel's intangible assets primarily consist of goodwill, tradenames, reacquired franchise rights, and franchise agreements. The company does not amortize goodwill or tradenames. This accounting treatment can affect the reported profitability and asset values of the company, which franchisees should consider when evaluating the financial health of the franchisor.