According to Cool Binz's 2025 Franchise Disclosure Document, the company recognized impairment losses related to intangible assets in 2022. Specifically, Cool Binz recognized a $787 impairment loss related to the Delta trade name and a $4,165 impairment loss related to franchise agreements. These losses were included in operating expenses.

This means that Cool Binz determined the value of the Delta trade name and franchise agreements had declined below their carrying amount on the company's books. This can happen for a variety of reasons, such as a decline in the performance of the related business, changes in market conditions, or other factors. The impairment losses represent a write-down of the value of these intangible assets on Cool Binz's balance sheet.

For a prospective Cool Binz franchisee, this information provides insight into how the company values its intangible assets and how it responds to changes in their value. While impairment losses are not necessarily a sign of financial distress, they can indicate that the company is facing challenges or that its expectations for future performance have changed. It is important to note that no impairment charge was recognized in 2023 or 2024.