How much was the impairment of goodwill for Cool Binz in 2023?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
consolidated statement of operations. The impairment loss is attributable in part to deteriorating economic conditions impacting the Company and elimination of the TruckMount manufacturing; furthermore, strategic shifts undertaken by management to improve the overall health of the business, including ongoing efforts to reduce the overall size of its franchise network in order to resolve a host of franchisee-related matters of noncompliance, adversely impacted expected future cash inflows as well.
During 2023, management determined that the carrying amount of the Company exceeded fair value, which was estimated based on the present value of expected future cash inflows. Accordingly, a goodwill impairment loss of $45,537 was recognized in 2023, which is included within operating expenses on the consolidated statement of operations. The impairment loss is attributable in part to deteriorating economic conditions impacting the Company, including rising interest rates and the
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the company recognized a goodwill impairment loss of $45,537 in 2023. This loss is included within operating expenses on the consolidated statement of operations.
The impairment loss was attributed to several factors, including deteriorating economic conditions impacting Cool Binz, such as rising interest rates and the increasing cost of accessible debt. These conditions made it more difficult for the company to invest and grow.
Additionally, strategic shifts undertaken by Cool Binz's management to improve the overall health of the business also contributed to the impairment loss. These shifts included efforts to reduce the size of its franchise network in order to resolve franchisee-related matters of noncompliance, which adversely impacted expected future cash inflows. The remaining goodwill was determined not to be impaired, as the carrying value of the remaining company exceeded the fair value.