What was the reported goodwill for Costa Vida Fresh Mexican Grill in 2022?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ion | (197,770) | _ | (291,439) | - | (268,447) | | | $ 767,684 | $ | 364,043 | $ | 342,302 | Depreciation expense for 2024, 2023, and 2022 was $102,326, $97,271, and $83,877, respectively.
4. INTANGIBLE ASSETS
Indefinite-lived intangibles consisted of the follo
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, the company reported goodwill of $4,317,601 in 2022. Goodwill, in this context, represents the excess of the purchase price over the fair value of tangible assets and liabilities acquired when Costa Vida Management, LLC purchased the franchise from Utah franchisor Costa Vida Management, Inc.
For a prospective franchisee, this figure is relevant because it reflects the value Costa Vida Fresh Mexican Grill places on its brand and reputation. Goodwill is not amortized but is monitored for impairment, meaning the company assesses regularly whether its value has declined. The FDD states that management's evaluation of intangibles resulted in no impairment as of December 31, 2024, 2023, and 2022.
The consistent goodwill value across 2022, 2023, and 2024 suggests that Costa Vida Fresh Mexican Grill's management believes the brand's value has remained stable during that period. However, it is important to note that goodwill is an intangible asset and its value can be subjective and subject to change based on market conditions and the company's performance.