What amortization method does Cr3 American Exteriors use for intangible assets?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
The Other Receivables presented on the balance sheet include amounts due from noncustomers. During the year ending December 31, 2023, the amount due in Other Receivables related to a marketing vendor has been recognized as a reduction in advertising cost during the year ending December 31, 2023.
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Other Assets
The Company has an intangible a
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the company amortizes its intangible assets, specifically the trademark acquisition cost, using the straight-line method over a fifteen-year period. The initial value of the trademark acquisition cost is stated as $1,300.
For a prospective Cr3 American Exteriors franchisee, this means that the franchisor recognizes the expense of the trademark (an intangible asset) evenly over 15 years. This is a standard accounting practice that spreads the cost of the asset over its useful life.
The FDD notes that during the year ending December 31, 2022, the amortization expense was $29, which was based on the company's date of inception. The total amortization expense for the intangible asset during the next five years will be $87 per year. This indicates a consistent and predictable expense related to the trademark asset for the company.