What was the accumulated amortization for Exit's goodwill as of December 31, 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Life | Amount | Amortization | Value | ||
|---|---|---|---|---|---|
| December 31, 2024 | |||||
| Goodwill 10 Years | $ 31,223 | $ (19,389) | $ 11,834 | ||
| Total | $ 31,223 | $ (19,389) | $ 11,834 | ||
| December 31, 2023 | |||||
| Goodwill 10 Years | $ 31,223 | $ (16,475) | $ 14,748 | ||
| Total | $ 31,223 | $ (16,475) | $ 14,748 | ||
| December 31, 2022 | |||||
| Goodwill 10 Years | $ 31,223 | $ (13,562) | $ 17,661 | ||
| Total | $ 31,223 | $ (13,562) | $ 17,661 | ||
| For the Years Ending December 31 | Amount | ||||
| --- | --- | --- | |||
| 2025 | $ 2,914 | ||||
| 2026 | 2,914 | ||||
| 2027 | 2,917 | ||||
| 2028 | 417 | ||||
| 2029 | 417 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the accumulated amortization for goodwill as of December 31, 2024, was $(19,389). The original cost of the goodwill was $31,223, resulting in a net carrying value of $11,834.
This goodwill is being amortized over a 10-year period. For a prospective franchisee, this indicates that Exit has intangible assets related to its brand and acquisitions that are being systematically expensed over time. The amortization expense for 2025 is projected to be $2,914, with slightly varying amounts in subsequent years due to the amortization schedule.
Understanding the nature and amortization of goodwill is important for assessing the financial health and stability of Exit. Franchisees should consider how these intangible assets contribute to the overall value and sustainability of the franchise system. Additionally, it's worth noting that management determined there was no impairment related to this goodwill for the years ended December 31, 2024, 2023, and 2022.