What was the total depreciation expense for Cornwell Quality Tools in 2023?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
Property, plant, and equipment are recorded at cost. Major additions and improvements are charged to the property accounts while replacements, maintenance, and repairs which do not improve or extend the lives of the respective assets, are expensed currently. When property is retired or otherwise disposed of, the cost of the property is removed from the asset account, accumulated depreciation is charged with an amount equivalent to the depreciation provided, and any resulting gain or loss is charged or credited to operations.
Depreciation has been provided using the straight-line method over the estimated useful lives of the assets as follows:
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the document does not explicitly state the total depreciation expense for 2023. However, it does mention how depreciation is handled. The company records property, plant, and equipment at cost, charging major additions and improvements to property accounts. Replacements, maintenance, and repairs that don't improve or extend asset lives are expensed currently. When property is retired or disposed of, the cost is removed from the asset account, accumulated depreciation is charged, and any gain or loss is recorded in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.
While the FDD provides details on how Cornwell Quality Tools accounts for depreciation, the specific depreciation expense for 2023 is not disclosed. Instead, the document focuses on goodwill amortization, noting that amortization expense for goodwill totaled $848,375 in both 2023 and 2022. This figure relates specifically to goodwill, an intangible asset, and not the depreciation of physical assets like property, plant, and equipment.
Therefore, a prospective franchisee would need to request additional financial information from Cornwell Quality Tools to determine the actual depreciation expense for 2023. Understanding this expense is crucial for assessing the company's profitability and financial health.