What was the value of Clear Pest Pros' goodwill as of December 31, 2024?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
l lives of the assets. Costs of maintenance and repairs are charged to expense when incurred.
Goodwill
The recorded amounts of goodwill from prior business combinations are based on management's best estimates of the fair values of assets acquired and liabilities assumed at the date of acquisition. Goodwill is not amortized but rather is assessed at least on an annual basis for impairment.
During 2024, management determined that the carrying amount of the Company exceeded fair value, which was estimated based on the present value of expected future cash inflows. Accordingly, a goodwill impairment loss of $10,519 was recognized in 2024, which is included within operating expenses on the consolidated statement of operations. The impairment loss is attributable in part to deteriorating economic conditions impacting the Company and elimination of the TruckMount manufacturing; furthermore, strategic shifts undertaken by management to improve the overall health of the business, including ongoing efforts to reduce the overall size of its franchise network in order to resolve a h
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the company recognized a goodwill impairment loss of $10,519 during 2024. This loss is included within operating expenses on the consolidated statement of operations. Goodwill represents the value of intangible assets acquired in prior business combinations.\n\nThe impairment loss was attributed to several factors. These include deteriorating economic conditions impacting Clear Pest Pros, the elimination of TruckMount manufacturing, and strategic shifts undertaken by management. These strategic shifts included efforts to reduce the size of its franchise network to resolve franchisee-related matters of noncompliance, which adversely impacted expected future cash inflows.\n\nGoodwill is not amortized but is assessed at least annually for impairment. During 2024, management determined that the carrying amount of the company exceeded its fair value, which was estimated based on the present value of expected future cash inflows. This determination led to the recognition of the $10,519 impairment loss. This means that the value of goodwill was reduced due to the factors mentioned above.