What was the gross value of Cicis' website asset as of December 31, 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 23 | ||
|---|---|---|
| Website | $ 220,000 | $ 220,000 |
| Accumulated amortization | (69,667) | (25,667) |
| Website, net | $ 150,333 | $ 194,333 |
During the years ended December 31, 2024 and 2023, amortization expense associated with the website totaled $44,000 and $25,667, respectively, and is presented with marketing general and administrative costs on the combined statements of income.
Estimated amortization expense, based on the current carrying value of the website for each of the fiscal years 2025 through 2027 is $44,000 and for fiscal year 2028 is $18,333.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the company has developed a website for its restaurant operations. The FDD states that the website is operational, and costs incurred during the operating stage are expensed as they are incurred. The document does not provide the gross value of the website asset as of December 31, 2024.
However, the FDD does mention that during the years ended December 31, 2024 and 2023, the amortization expense associated with the website totaled $44,000 and $25,667, respectively. This expense is included with marketing general and administrative costs on the combined statements of income. The estimated amortization expense, based on the current carrying value of the website, is projected to be $44,000 for each of the fiscal years 2025 through 2027, and $18,333 for fiscal year 2028.
While the amortization expense is disclosed, the actual gross value of the website asset is not specified in this section. A prospective franchisee should inquire with Cicis about the initial value of the website asset and how it is being amortized to better understand the company's financial reporting practices.