What was the accumulated amortization for Clear Pest Pros' franchise agreements in 2024?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
s in thousands)**
9. Intangible Assets and Goodwill
Intangible assets and goodwill of the Company are summarized as follows:
December 31,
| 2024 | 2023 | 2022 (as restated) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||
| Amortized Intangible Assets Franchise agreements Patented technology Trade names Internal software Patents and trademarks | $ | 32,215 7,685 7,400 1,700 384 | $ | 13,629 5,994 4,125 1,700 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the accumulated amortization for franchise agreements in 2024 was $13,629. This figure represents the total amount of amortization expense that has been recognized against the franchise agreements asset up to the end of 2024. Amortization is the systematic allocation of the cost of an intangible asset (like a franchise agreement) over its useful life.
For a prospective Clear Pest Pros franchisee, this information is useful for understanding how the franchisor accounts for its intangible assets. It also provides insight into the financial performance and valuation of these assets. The accumulated amortization reduces the net book value of the franchise agreements on Clear Pest Pros' balance sheet.
It's important to note that this figure is specific to Clear Pest Pros and may not be directly comparable to other franchise systems due to differences in accounting policies, the terms of franchise agreements, and the estimated useful lives of the assets. Reviewing the franchisor's financial statements and related notes can provide a more comprehensive understanding of their accounting practices and financial performance.