What was the amortization amount for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Goodwill | $ | 23,802 | $ | 23,802 | ||
|---|---|---|---|---|---|---|
| Accumulated amortization | (9,124) | (6,744) | ||||
| Goodwill, net | $ | 14,678 | $ | 17,058 | ||
| Franchise agreements | $ | 140,000 | $ | 140,000 | ||
| Accumulated amortization | (41,281) | (30,512) | ||||
| Franchise agreements, net | $ | 98,719 | $ | 109,488 |
During the years ended December 31, 2024 and 2023, amortization expense associated with goodwill totaled $2,380 for each year, and is presented with other general and administrative expenses on the combined statements of income.
During the years ended December 31, 2024 and 2023, amortization expense associated with franchise agreements totaled $10,769 for each year, and is presented with other general and administrative expenses on the combined statements of income.
Notes to Combined Financial Statements
**Note 1.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the company had two specific amortization expenses in 2023. Amortization expense associated with goodwill totaled $2,380, and amortization expense tied to franchise agreements totaled $10,769. Both of these expenses are included within other general and administrative expenses on the combined statements of income.
For a prospective Cicis franchisee, understanding amortization is crucial because it reflects the expense of using intangible assets like goodwill and franchise agreements over time. These expenses impact the company's overall profitability, which can affect the financial health and stability of the franchise system. Knowing these figures helps franchisees assess the financial management and accounting practices of Cicis.
It's also worth noting that the estimated amortization expense for goodwill and franchise agreements is projected to remain constant at $2,380 and $10,769, respectively, for each of the fiscal years from 2024 through 2028. This consistency can provide some predictability in forecasting future expenses. Franchisees should consider these factors when evaluating the long-term financial outlook of their investment with Cicis.