What was the amount of goodwill reported by Clear Pest Pros in 2023?
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 1,700 147 | $ | 32,215 7,600 7,400 1,818 514 | $ | 11,151 4,886 3,375 1,766 105 | $ | 32,215 7,650 7,503 1,818 297 | $ | 8,684 3,801 2,655 1,745 32 |
| Total Amortized Intangible | $ | 49,384 | $ | 25,595 | $ | 49,547 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the company reported $10,519 in goodwill for the year 2023. Goodwill, in accounting terms, represents the intangible assets acquired in a business combination that are not separately identifiable, such as brand reputation or customer relationships. It is an important metric for assessing the overall financial health and value of a company.
The FDD also indicates that during 2024, Clear Pest Pros recognized a goodwill impairment loss of $10,519. This impairment was attributed to factors such as deteriorating economic conditions, the elimination of TruckMount manufacturing, and strategic shifts aimed at improving the business, including reducing the size of the franchise network to address franchisee noncompliance issues.
For a prospective franchisee, the presence and subsequent impairment of goodwill can signal potential risks. It's crucial to understand the reasons behind the goodwill impairment and how Clear Pest Pros plans to address the underlying issues. This includes evaluating the company's strategies for improving franchisee compliance and navigating economic challenges. Further due diligence and discussions with existing franchisees are advisable to assess the stability and growth potential of the Clear Pest Pros franchise.