What was the reported value of Churchs Chicken's goodwill, net, on 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 reported value of goodwill, net, on December 31, 2023, was $30,160. In comparison, the goodwill, net, on December 25, 2022, was $33,930. Goodwill represents the intangible assets of a business, such as brand reputation and customer relationships, that are not separately identifiable. It is often acquired as part of a business acquisition.
The table also shows the ending balance of goodwill (gross) and accumulated amortization expense. As of December 31, 2023, the ending balance of goodwill (gross) was $37,700, with accumulated amortization expense of ($7,540). For December 25, 2022, the ending balance of goodwill (gross) was $37,700, with accumulated amortization expense of ($3,770).
For a prospective franchisee, goodwill can be an important factor to consider. A strong goodwill value suggests that Churchs Chicken has a positive reputation and strong brand recognition, which can help attract customers and support sales. However, it's important to note that goodwill is an intangible asset and its value can fluctuate over time. The decrease in net goodwill from 2022 to 2023 could be due to amortization or other factors, which a potential franchisee may want to investigate further.