What was the amortization and depreciation for Chesters in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
,834 |
CHESTER'S INTERNATIONAL, LLC STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 2,582,783 | $ 2,693,133 |
| Adjustments to reconcile net income to net cash | ||
| p |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the amortization and depreciation for the year ending December 31, 2023, was $462,783. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities.
Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives. Depreciation typically applies to tangible assets like equipment, while amortization applies to intangible assets like patents or trademarks. These expenses reflect the reduction in value of these assets over time.
For a prospective Chesters franchisee, understanding these figures is crucial for assessing the financial health and stability of the company. Amortization and depreciation can impact the net income and cash flow, which are key indicators of profitability and sustainability. Reviewing these figures over several years, as presented in the FDD, can provide insights into how Chesters manages its assets and investments. It is important to note that these figures reflect the financial performance of the franchisor, Chesters International, LLC, and not the performance of individual franchise locations.