What method is used to calculate depreciation and amortization of property and equipment for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Property and Equipment—Property and equipment is stated at historical cost. Depreciation and amortization of property and equipment are computed on the straight-line method over the estimated useful lives of the assets or the remaining term of the lease for leasehold improvements. Estimated useful lives range from 3 to 10 years for equipment, the shorter of 20 years or remaining lease term for
leasehold improvements, and 15 to 40 years for buildings. Significant improvements that extend the lives of property and equipment are capitalized. Costs for repairs and maintenance are charged to expense as incurred. When property is retired or otherwise disposed of, the recorded cost of the assets and their related accumulated depreciation are removed from the Consolidated Balance Sheets and any related gains or losses are included in income.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to Dq Treat's 2025 Franchise Disclosure Document, the depreciation and amortization of property and equipment are calculated using the straight-line method. This method is applied over the estimated useful lives of the assets or the remaining term of the lease for leasehold improvements.
The estimated useful lives for different types of assets vary. Equipment is depreciated over 3 to 10 years, leasehold improvements are depreciated over the shorter of 20 years or the remaining lease term, and buildings are depreciated over 15 to 40 years.
Significant improvements that extend the lives of property and equipment are capitalized, meaning their cost is added to the asset's value and depreciated over the extended life. Regular repair and maintenance costs are expensed as they are incurred. When property is retired or disposed of, its recorded cost and accumulated depreciation are removed from the balance sheets, and any gains or losses are included in the income statement.