What was the net value of furniture and equipment for Coffee News on December 31, 2023?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| Furniture and equipment consist of the following: | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Furniture and equipment | $5,940 $ | 107,657 | $107,657 | |
| Less accumulated depreciation | (5,940) | (75,792) | (68,680) | |
| $ | - $ | 31,865 | $38,977 |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the net value of furniture and equipment on December 31, 2023, was $31,865. This figure represents the original cost of the furniture and equipment ($107,657) less the accumulated depreciation ($75,792) up to that date.
For a prospective franchisee, this indicates the depreciated value of the physical assets owned by Coffee News USA, Inc. at that time. It's important to note that this value reflects the company's assets and not necessarily the investment a new franchisee would need to make in furniture and equipment.
Franchisees should consider this information in the context of the overall financial health of Coffee News. While the furniture and equipment value itself may not be a critical factor, it contributes to the total asset value of the company. Reviewing these figures over several years (2022-2024) can reveal trends in Coffee News's asset management and capital investments.
It is also important to note that the furniture and equipment value decreased to $0 in 2024. This could be due to further depreciation, disposal of assets, or other accounting adjustments. A prospective franchisee may want to inquire about the reasons for this change to better understand the company's asset management practices.