What was the accumulated amortization for Exit's franchise territories as of December 31, 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
to the organization of the Company, including legal fees, were capitalized. These expenses are being amortized on a straight-line basis over a period of fifteen years and are stated at cost net of accumulated amortization.
Intangible assets are reviewed annually
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the amortization expense for the year ending December 31, 2024, totaled $84,066. This figure represents the expense recognized during that specific year. The FDD states that Exit amortizes the costs associated with acquiring franchise rights over the term of the agreement, which ranges from eight to fifteen years. These costs are capitalized and then amortized on a straight-line basis.
However, the document does not explicitly state the accumulated amortization as of December 31, 2024. While the annual amortization expense is provided, the total amount of amortization that has built up over previous years is not disclosed. This means that while we know how much amortization expense Exit recognized in 2024, we cannot determine the total accumulated amortization from prior years.
A prospective Exit franchisee should inquire with the franchisor about the accumulated amortization related to franchise territories. Understanding the accumulated amortization, in addition to the annual expense, provides a more complete picture of the financial status and the value of the intangible assets related to the franchise territories. This information is essential for assessing the overall financial health and performance of Exit.