How often are Cr3 American Exteriors' intangible assets measured for impairment?
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 the 2025 FDD, Cr3 American Exteriors measures its intangible assets annually for impairment. The company's intangible asset consists of the trademark acquisition cost, which is valued at $1,300. These assets are amortized over a fifteen-year period using the straight-line method.
For a prospective Cr3 American Exteriors franchisee, this means the franchisor reviews the value of its trademarks each year to determine if there has been a permanent reduction in their fair market value. If the value has declined, the company will recognize an impairment loss on its financial statements.
The FDD also states that during the year ending December 31, 2022, the amortization expense was $29 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 Cr3 American Exteriors.