What was the ending balance of gross goodwill for Churchs Chicken?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Dec | ember 31, 2023 | De | cember 25, 2022 | |
|---|---|---|---|---|
| Ending balance goodwill (gross) Accumulated amortization expense | s | 37,700 (7,540) |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the ending balance of gross goodwill was $37,700 as of December 31, 2023, and December 25, 2022. Goodwill represents the intangible assets acquired in a business combination, such as brand reputation and customer relationships.
The accumulated amortization expense, which is the reduction in the value of goodwill over time, was ($7,540) as of December 31, 2023, and ($3,770) as of December 25, 2022. The ending balance of net goodwill, which is the gross goodwill less accumulated amortization, was $30,160 as of December 31, 2023, and $33,930 as of December 25, 2022.
For a prospective Churchs Chicken franchisee, understanding goodwill can be important when assessing the overall financial health and stability of the franchise system. While goodwill itself is not a tangible asset that can be directly used in operations, it reflects the value of the Churchs Chicken brand and its potential to generate future revenue. Monitoring the changes in goodwill and accumulated amortization can provide insights into how the brand's value is being maintained over time.