What was the net value of Chem Dry's intangible assets in 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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 audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
March 22, 2024
Consolidated Balance Sheet
December 31, 2023, 2022, and 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| (As Restated) | |||
| Assets | |||
| Current Assets | |||
| Cash | $ 3,701 | $ 1,372 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the net value of intangible assets as of December 31, 2021, was $24,988,000. This figure is part of the consolidated balance sheet, reflecting the total value of intangible assets held by Chem Dry and its subsidiaries. The amounts are presented with thousands omitted. Therefore, the actual value is in thousands of dollars.
Intangible assets typically include items like trademarks, franchise agreements, and other non-physical assets that contribute to the company's long-term value. For a prospective franchisee, understanding the value and composition of these intangible assets is crucial. It provides insight into the brand's strength and market position, which can influence the franchisee's potential success. A strong brand, reflected in high intangible asset value, can attract customers and provide a competitive edge.
It's important to note that these intangible assets are subject to amortization, meaning their value is systematically reduced over their estimated useful lives. Additionally, Chem Dry reviews these assets for potential impairment, and if their carrying amounts are deemed unrecoverable, impairment losses are recognized. This can affect the overall financial health of the company, and potential franchisees should monitor these factors in Chem Dry's financial statements.
Therefore, while the $24,988,000 figure provides a snapshot of the intangible assets' value in 2021, prospective franchisees should also consider the amortization and impairment policies, as well as any subsequent changes in value, to gain a comprehensive understanding of the company's asset base and financial stability.