What was the accumulated amortization for Chem Dry's patented technology in 2023?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||
| Amortized intangible assets: | |||||||||
| Patented technology | 7,600 | 4,886 | 7,650 | 3,801 | 7,600 | 2,714 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the accumulated amortization for patented technology was $4,886 in 2023. This figure represents the total amount of amortization expense that has been recognized against the value of Chem Dry's patented technology up to December 31, 2023. Amortization is the systematic allocation of the cost of an intangible asset (like patented technology) over its useful life.
For a prospective Chem Dry franchisee, understanding accumulated amortization can be helpful in assessing the financial health and asset management practices of the company. It provides insight into how Chem Dry values and accounts for its intangible assets, which are critical to its business model. The change in accumulated amortization from year to year also reflects the ongoing expense associated with these assets.
It's important to note that this figure is just one component of Chem Dry's overall financial picture. A potential franchisee should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of the company's financial position and the implications for their investment.