What was the depreciation expense for Chesters for the year ended December 31, 2022?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Furniture and equipment | $ 533,910 | $ 521,401 |
| Leasehold Improvements | 214,927 | 34,927 |
| Vehicles | 53,165 | 53,165 |
| Construction-in-progress | 478,828 | - |
| 1,280,830 | 609,493 | |
| Less acc |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the depreciation expense for the years ended December 31, 2023, and 2022 was $49,343 and $35,746, respectively. This indicates that Chesters's depreciation expense for the year 2022 was $35,746.
Depreciation expense is an accounting method used to allocate the cost of a tangible asset over its useful life. For a potential Chesters franchisee, understanding the depreciation expense of the franchisor can provide insights into the capital expenditures and asset management practices of the company. It reflects the wear and tear or obsolescence of assets like equipment and property used by Chesters in its operations.
This information is part of the audited financial statements, which are prepared by an independent auditor (Warren Averett, LLC). These statements offer a detailed look into the financial health and performance of Chesters, which can be valuable for prospective franchisees in assessing the stability and profitability of the franchise system. Reviewing these figures in the context of Chesters's overall financial performance can help franchisees make informed decisions.