How much was Cicis' accumulated amortization for franchise agreements in 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise agreements | $ 140,000 | $ | 140,000 |
|---|---|---|---|
| Accumulated amortization | (30,512) | (19,743) | |
| Franchise agreements, net | $ 109,488 | $ | 120,257 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the accumulated amortization for franchise agreements in 2022 was $(19,743). This figure represents the total amount of amortization expense that has been recognized against the initial value of the franchise agreements up to the end of 2022. Amortization is the systematic allocation of the cost of an intangible asset (like franchise agreements) over its useful life.
For a prospective Cicis franchisee, understanding accumulated amortization is crucial for assessing the financial health and stability of the franchise system. It provides insight into how Cicis manages its intangible assets and can affect the net value of these assets on the company's balance sheet. A higher accumulated amortization could indicate a longer period over which the franchise agreements have been amortized, or potentially a faster rate of amortization.
It's also important to note that the amortization expense associated with franchise agreements for both 2023 and 2022 was $10,769 each year. This consistent amortization expense suggests a stable and predictable expense related to these agreements. Franchisees should consider these figures in conjunction with other financial metrics to gain a comprehensive understanding of Cicis' financial performance and the value of its franchise agreements.