What is the value of the trademark acquisition cost for Cr3 American Exteriors?
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' 2025 Franchise Disclosure Document, the company possesses an intangible asset related to trademark acquisition. As of the financial statements, this asset is valued at $1,300. This intangible asset is amortized over a fifteen-year period using the straight-line method.
For a prospective franchisee, this information indicates that Cr3 American Exteriors has invested in its trademarks, which are a crucial part of the brand's identity and value. The amortization of this asset means that the cost is being spread out over time for accounting purposes.
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, albeit small, reduction in the asset's book value each year.