What was the net value of Cicis' franchise agreements as of December 31, 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
1, 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
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the amortization expense associated with franchise agreements totaled $10,769 for the year ended December 31, 2023. This expense is included within other general and administrative expenses on the combined statements of income. The document also states that the estimated amortization expense, based on the current carrying value of franchise agreements for each of the fiscal years 2025 through 2029, is $10,769.
This indicates that Cicis recognizes the value of its franchise agreements as an asset and amortizes it over time. The consistent amortization expense from 2025 through 2029 suggests a straight-line amortization method is being used. However, the document does not explicitly state the total net value of these franchise agreements as of December 31, 2023.
A prospective franchisee should request clarification from Cicis regarding the total value of franchise agreements as of December 31, 2023. Understanding the total asset value and how it is amortized can provide insights into the financial management and valuation of franchise rights within the Cicis system. This information is essential for making an informed investment decision.