What was the total cost of Chem Dry's property and equipment in 2022?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| $ 2,435 | $ 3,563 |
The activity in the allowance for credit losses is as follows:
| 2023 | |
|---|---|
| Balance at beginning of period | $ 1,746 |
| Additions charged to expense | 292 |
| Deductions/write-offs | (923) |
| Balance at end of period | $ 1,115 |
December 31, 2023, 2022, and 2021 (000s omitted)
Note 8 - Property and Equipment
Property and equipment at December 31, 2023, 2022, and 2021 are summarized as follows:
| 2023 | 2022 | 2021 | Depreciable Life - Years |
|---|
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the total cost of property and equipment in 2022 was $3,036,000. This figure represents the aggregate investment in machinery, vehicles, furniture, office equipment, leasehold improvements, and construction in progress. It's important to note that this is the total cost before accounting for accumulated depreciation.
For a prospective Chem Dry franchisee, understanding these figures is crucial for assessing the company's asset base and potential capital expenditure requirements. The depreciable life of these assets ranges from 1 to 10 years, which impacts the annual depreciation expense and, consequently, the franchisee's profitability. The accumulated depreciation for 2022 was $1,335,000, resulting in a net property and equipment value of $1,701,000.
These numbers provide a snapshot of Chem Dry's investment in its operational infrastructure. Franchisees should consider these values in conjunction with other financial metrics to evaluate the overall financial health and stability of the Chem Dry franchise system. Reviewing trends in these figures over the three years (2021-2023) can also offer insights into the company's investment strategy and growth trajectory.