What is the total value of Closet Storage Concepts' intangible assets, net?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
eciated balance is warranted. Based on its most recent analysis, the Company believes that no impairment of property and equipment exists.
Intangible Assets
Intangible assets are amortized on a straight‐line basis over their useful lives, estimated to be fifteen years. Intangibles primarily exist relating to the acquisition of certain franchise costs and restrictive covenants on October 31, 2013. There has been no impairment loss related to the intangibles as of December 31, 2024. Estimated future amortization expense for the years 2025 through 2027 is $30,000 per year, and $16,667 in 2028.
Intangible assets are tested for impairment at least annually on December 31, or more frequently if events or changes in circumstances, such as a significant decline in sales, earnings, or cash flows, or material adverse changes in the business climate, indicate that the ca
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
Based on the 2025 Closet Storage Concepts FDD, the document does not explicitly state the total value of intangible assets, net. However, it does provide some information regarding intangible assets.
The FDD mentions that intangible assets are amortized using the straight-line method over an estimated useful life of fifteen years. These assets primarily relate to the acquisition of certain franchise costs and restrictive covenants dating back to October 31, 2013. The FDD indicates that there was no impairment loss related to the intangibles as of December 31, 2024. It also provides the estimated future amortization expense for the years 2025 through 2027, which is $30,000 per year, and $16,667 in 2028.
To determine the total value of Closet Storage Concepts' intangible assets, net, a prospective franchisee should review the complete financial statements within the FDD or request this information directly from the franchisor. This will provide a clearer picture of the company's asset valuation and financial health.