What is the depreciable life in years for vehicles owned by Clear Pest Pros?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
onsolidated Financial Statements (dollars in thousands)**
8. Property and Equipment
Property and equipment are summarized as follows:
| December 31, | 2024 | 2023 | 2022 | Depreciable Life (Years) |
|---|---|---|---|---|
| Machinery and equipment | $ 861 | $ 844 | $ 762 | 5-7 |
| Vehicles | 276 | 222 | 102 | 6 |
| Furniture and Fixtures | 191 | 191 | 126 | 7 |
| Office and computer equipment | 1,823 | 1,442 | 1,253 | 3-7 |
| Leasehold Improvements | 445 | 441 | 431 | 1-5 |
| Construction in progress | 488 | 1,005 | 362 | - |
| Total Cost | 4,084 | 4,1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the depreciable life for vehicles is 6 years. This means that for accounting purposes, Clear Pest Pros depreciates the value of its vehicles over a 6-year period using the straight-line method, as mentioned in the accounting policies. This depreciation is a non-cash expense that reflects the reduction in the vehicle's value over time due to wear and tear.
For a prospective Clear Pest Pros franchisee, understanding the depreciable life of vehicles is important for financial planning and tax purposes. It allows the franchisee to estimate the annual depreciation expense they can deduct, which can impact their taxable income. The FDD also mentions that Clear Pest Pros may require franchisees to re-brand their business vehicles to conform to the Clear Pest Pros model appearance standards, and may also require the purchase and installation of a GPS device in all service vehicles.
The depreciation method used by Clear Pest Pros is the straight-line method, which means the cost of the asset is evenly spread over its useful life. The FDD also provides information on the depreciable life of other assets, such as machinery and equipment (5-7 years), furniture and fixtures (7 years), and office and computer equipment (3-7 years). This information helps franchisees understand how Clear Pest Pros accounts for the depreciation of its assets and how it impacts their financial statements.
It is important for prospective franchisees to consult with a financial advisor or accountant to understand the tax implications of depreciation and how it can impact their overall profitability. Additionally, franchisees should inquire about any specific requirements or guidelines Clear Pest Pros has regarding vehicle purchases, branding, and GPS installation, as these factors can impact the overall cost and depreciation schedule of the vehicles.