What depreciation method does Crepe De Licious use for furniture, equipment, and software?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ast. As a result, management has individually assessed these balances for an allowance for credit losses as of December 31, 2023. During 2024, the accounts receivables were written off against the allowance.
The Company will write-off receivables when there is information that indicates the debtor is facing significant financial difficulty and there is no possibility of recovery. If any recoveries are made from any accounts previously written off, they will b
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company uses the straight-line method to depreciate its property and equipment. This method is applied to furniture, equipment, and software over an estimated useful life of five years. Leasehold improvements are depreciated over the lease term.
For a prospective franchisee, this means that the cost of these assets will be evenly spread out over their useful life for accounting purposes. The straight-line method is a common and simple way to allocate the cost of an asset over time, which can help in understanding the financial performance of a Crepe De Licious franchise.
The FDD also notes that maintenance and repairs are charged to operations, while major renewals and improvements are capitalized. Depreciation expense for the years ended December 31, 2024 and December 31, 2023 was $37,586 and $37,574, respectively. This information can be useful for a franchisee in projecting their own expenses and understanding how Crepe De Licious manages its assets.