What was the accumulated amortization for Exit's goodwill as of December 31, 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Life | Amount | Amortization | Value | ||
|---|---|---|---|---|---|
| December 31, 2022 | |||||
| Goodwill 10 Years | $ 31,223 | $ (13,562) | $ 17,661 | ||
| Total | $ 31,223 | $ (13,562) | $ 17,661 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, as of December 31, 2022, the accumulated amortization for goodwill was $(13,562). The gross carrying amount of goodwill was $31,223, resulting in a net carrying value of $17,661. Exit amortizes goodwill over a 10-year period.
Goodwill typically arises from the acquisition of another business, representing the intangible assets that are not separately identifiable, such as brand reputation or customer relationships. The fact that Exit has goodwill on its books suggests that it has grown through acquisitions.
For a prospective Exit franchisee, understanding the amortization of goodwill is important for assessing the company's financial health and how it manages its acquisitions. While amortization is a non-cash expense, it does impact the company's reported net income. The consistent amortization schedule provides a predictable expense over the 10-year period.