What is the depreciable life in years for vehicles used 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' 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 six-year period using the straight-line method.
For a prospective franchisee, this is relevant for understanding the long-term value and tax implications of vehicle assets used in the business. The straight-line method, as noted in the FDD, evenly distributes the cost of the asset over its useful life, which can impact the franchisee's annual taxable income.
Depreciation is a non-cash expense that can reduce taxable income, and knowing the depreciable life of vehicles helps in financial planning and forecasting. This information is typically used in conjunction with other financial data to assess the overall profitability and tax obligations of a Clear Pest Pros franchise.