What was the total amount of depreciation for Crepe De Licious in 2022?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | ||||
|---|---|---|---|---|
| Current assets | ||||
| Cash | $ 131,376 | $ 97,398 | ||
| Accounts receivable (net of allowance for credit losses | ||||
| of $10,800 and $-0- as of 2023 and 2022, respectively) | 73,948 | 4 3,172 | ||
| Rebate receivable | 26,499 | 4,508 | ||
| Inventory | 19,156 | 1 6,886 | ||
| Prepaid expenses | 5,906 | 2 ,950 | ||
| Total current assets | 256,885 | 164,914 | ||
| Property and equipment | ||||
| Leasehold improvements | 118,784 | 118,784 | ||
| Furniture and equipment | 98,598 | 9 8,598 | ||
| Software | 4,427 221,809 | 4 ,427 221,809 | ||
| Less: accumulated depreciation | 105,943 | 6 8,369 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the accumulated depreciation as of December 31, 2022, was $68,369. This figure reflects the total depreciation expense recognized on Crepe De Licious's assets up to that point in time. Accumulated depreciation is a contra-asset account that reduces the book value of the company's assets, such as leasehold improvements, furniture, equipment, and software.
For a prospective Crepe De Licious franchisee, understanding accumulated depreciation is crucial for assessing the net value of the franchisor's assets. It provides insight into the age and condition of these assets, which can indirectly affect the support and resources available to franchisees. Monitoring this figure over time can also indicate how Crepe De Licious manages its assets and reinvests in the business.
It's important to note that while the FDD provides the accumulated depreciation, it does not detail the annual depreciation expense for 2022. Franchisees might want to request additional financial statements or clarification from Crepe De Licious to understand the specific depreciation expense recognized during that year. This information can help in evaluating the franchisor's profitability and financial health.