According to Cool Binz's 2025 Franchise Disclosure Document, the amortization expense for intangible assets totaled $4,380,000 in 2024, $4,380,000 in 2023, and $5,169,000 in 2022. The FDD provides these figures as part of the notes to the consolidated financial statements.

For a prospective Cool Binz franchisee, this information is relevant in understanding the financial accounting practices of the franchisor. Amortization is the process of expensing the cost of an intangible asset over its useful life. Intangible assets are non-physical assets like patents, trademarks, and goodwill. The amortization expense reflects the decline in value of these assets over time.

The specific method Cool Binz uses to amortize these assets (e.g., straight-line, declining balance) is not detailed in this excerpt. Understanding the specific amortization method would allow a franchisee to better interpret Cool Binz's financial statements and assess the value of its intangible assets. It is also important to note that these figures are in thousands of dollars.

To gain a comprehensive understanding, a prospective franchisee should inquire with Cool Binz about the specific amortization methods used for their intangible assets and the estimated useful lives of those assets. This information is crucial for assessing the long-term financial health and stability of the Cool Binz franchise system.