What was the accumulated amortization for Chem Dry's trade names in 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2023 | (As Restated) | 2021 | |||||||
| Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||
| Amortized intangible assets: | |||||||||
| Trade names | 7,400 | 3,375 | 7,503 | 2,655 | 8,500 | 2,104 |
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 trade names as of December 31, 2021, was $2,104 (thousands omitted). This figure represents the total amount of amortization expense that has been recognized against the value of Chem Dry's trade names up to that point in time. Amortization is the systematic allocation of the cost of an intangible asset (like a trade name) over its useful life.
For a prospective Chem Dry franchisee, understanding accumulated amortization can provide insights into how the franchisor values and accounts for its intangible assets. It reflects the extent to which the trade names' value has been recognized as an expense on the company's financial statements. This can be useful in assessing the financial health and stability of Chem Dry.
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 franchisor's financial condition and the implications for their investment.