What is the net amount associated with the Non-Competition Agreement for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
in connection with the October 31, 2013 More Space Place, Inc. acquisition shown net of accumulated amortization at December 31, 2024 consisted of the following:
| Gross | Amortization | Net | |
|---|---|---|---|
| Qualified | $ 300,000 | $ 225,000 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the net amount associated with the Non-Competition Agreement as of a specific date is detailed in the financial statements. The provided excerpt includes a table outlining the gross value, amortization, and net value of the Non-Competition Agreement.
Specifically, the table shows that the Non-Competition Agreement has a gross value of $150,000 and an amortization of $118,333. After accounting for amortization, the net value of the Non-Competition Agreement is $31,667. This figure represents the remaining unamortized value of the agreement as of the date of the financial statement.
This information is relevant for prospective Closet Storage Concepts franchisees as it provides insight into the financial accounting of intangible assets like the Non-Competition Agreement. Understanding the value and amortization of such agreements can help franchisees assess the overall financial health and accounting practices of the franchisor. It's important to note that this net amount reflects the value at a specific point in time and may change over subsequent periods as further amortization occurs.