How does Dog Haus assess its indefinite lived intangible assets for impairment?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Dog Haus's indefinite lived intangible asset consists of a trademark. The life of trademark is indefinite as the Company intends to renew trademarks at the end of their terms. Intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment if events or changes in circumstances indicate that it is more likely than not that the indefinite lived asset is impaired. Dog Haus completed a qualitative test for indefinite lived asset impairment as of December 31, 2024 and 2023. For both the years ended December 31, 2024 and 2023, Dog Haus determined that there was no impairment of the indefinite lived intangible assets.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the company's indefinite lived intangible asset consists of its trademark. Dog Haus does not amortize intangible assets with indefinite useful lives. Instead, Dog Haus tests these assets for impairment if events or changes in circumstances suggest that the asset is more likely than not impaired.
For the years ending December 31, 2024, and 2023, Dog Haus conducted a qualitative test for impairment of these assets. The results of these tests led Dog Haus to determine that there was no impairment of the indefinite lived intangible assets for either of those years.
This means that Dog Haus periodically reviews the value of its trademark to ensure it is still accurate. If there are indications that the trademark's value has declined, Dog Haus will perform a test to determine if the value has been impaired. This is a standard accounting practice to ensure that the company's assets are not overvalued on its balance sheet.