What was the total cost of indefinite-lived territorial franchise rights for Dq Treat in 2024?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
s reacquired prior to January 1, 2005, are classified in the consolidated balance sheets as goodwill. The Codification requires franchise rights reacquired subsequent to January 1, 2005, to be recognized as an intangible asset apart from goodwill. Intangibles include any reacquired franchise rights and trademarks/trade names acquired after January 1, 2005.
The Company tests goodwill and indefinite lived intangible assets for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired, based on several factors, including operating results, business plans, and future estimated cash f
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 total cost of indefinite-lived territorial franchise rights in 2024 was $73,275. The accumulated amortization was $ -, resulting in a net value of $73,275.
In 2023, the cost for the same rights was $73,295 with accumulated amortization of $ -, resulting in a net value of $73,295. This indicates a slight decrease in the cost of indefinite-lived territorial franchise rights from 2023 to 2024.
For a prospective franchisee, this information is useful for understanding the value of the territorial rights that Dq Treat grants. The indefinite-lived nature of these rights suggests that they continue as long as the franchise agreement is valid, providing long-term benefits to the franchisee. However, it is important to note that this cost does not include other potential fees or investments required to establish and operate a Dq Treat franchise.