What was the gross carrying amount of Chem Dry's internal software as of December 31, 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: | |||||||||
| Internal software | 1,818 | 1,766 | 1,818 | 1,745 | 1,800 | 1,443 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the gross carrying amount of internal software as of December 31, 2021, was $1,800. This figure represents the initial cost of the software before any amortization (reduction in value) is accounted for.
For a prospective Chem Dry franchisee, this information provides insight into the company's investment in its own internal software. Internal software can be used for various purposes, such as managing franchise operations, customer relationships, or financial data. Understanding the value Chem Dry places on its software can help a franchisee assess the technological resources available to them.
The FDD also lists the accumulated amortization for the internal software. As of December 31, 2021, the accumulated amortization was $1,443. This means that the net book value of the software (gross carrying amount less accumulated amortization) was $357 ($1,800 - $1,443). This indicates that the software was nearing the end of its useful life or had a limited impact on the company's financials.
It is important to note that these figures are presented in thousands of dollars. While the gross carrying amount of the internal software is relatively small compared to other intangible assets like franchise agreements and goodwill, it still represents a tangible investment by Chem Dry in its operational infrastructure.