What was the ending balance of net goodwill for Churchs Chicken as of December 31, 2023?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | S 8,78 |
|---|---|
| 2025 | 6,97 |
| 2026 | 6,97 |
| 2027 | 6,69 |
| 2028 | 6,64 |
| Dec | ember 31, 2023 | De | cember 25, 2022 | |
|---|---|---|---|---|
| Ending balance goodwill (gross) Accumulated amortization expense | s |
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 net goodwill as of December 31, 2023, was $30,160. The gross goodwill before accumulated amortization was $37,700, with accumulated amortization expense of $7,540 deducted to arrive at the net figure.
Goodwill represents the intangible assets acquired in a business combination, such as brand reputation and customer relationships. It is the difference between the purchase price of a business and the fair value of its identifiable net assets. Goodwill is not amortized directly but is tested for impairment at least annually. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized.
The net goodwill balance reflects the value that Churchs Chicken places on its brand and business operations beyond its tangible assets. Franchisees benefit from Churchs Chicken's established goodwill through brand recognition and customer loyalty. A strong goodwill balance can indicate a healthy and well-managed franchise system.
Prospective franchisees should monitor the goodwill balance and any related impairment charges in future financial statements. A significant decline in goodwill could signal challenges within the Churchs Chicken system that may impact franchisee profitability and the overall brand value.