What is the amortization amount for Exit's goodwill for the year ending December 31, 2029?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
indicate their carrying amount may not be recoverable.
On September 10, 2023, the Company entered into a 10-year agreement with Exit Realty Corp. International for the franchise territories currently managed by the Company. As part of the agreement, the Company revalued the intangible assets ass
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the estimated amortization expense for goodwill for the year ending December 31, 2029, is $83,808. This figure is part of a series of estimated amortization expenses listed for the years 2025 through 2029, with a total estimated amortization expense of $729,814.
It's important to understand that amortization is the process of spreading out the cost of an intangible asset over its useful life. In Exit's case, this goodwill amortization relates to the acquisition of Legacy Success Group, LLC on January 1, 2018, with an additional $6,250 assigned to goodwill during the year ended December 31, 2020. The total goodwill associated with Legacy Success Group, LLC's reputation is $24,973, and Exit began amortizing it over a ten-year period starting January 1, 2018.
For a prospective Exit franchisee, this means that Exit is systematically reducing the value of its goodwill asset on its balance sheet each year. The amortization expense of $83,808 for 2029 reflects the portion of the goodwill's value that is being recognized as an expense during that year. This accounting practice affects Exit's reported profits, as the amortization expense reduces the net income. Franchisees should be aware of how such accounting practices can influence the financial health and profitability of the franchisor.