What is the amortization amount for Exit for the year ending December 31, 2029?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Years Ending December 31 | Amount | |
|---|---|---|
| 2025 | $ | 84,065 |
| 2026 | 84,065 | |
| 2027 | 84,065 | |
| 2028 | 83,997 | |
| 2029 | 83,808 | |
| Thereafter | 309,814 | |
| Total estimated amortization expense | $ 729,814 |
| For the Years Ending December 31 | Amount | |
|---|---|---|
| 2025 | $ 96,182 | |
| 2026 | 63,225 | |
| 2027 | 34,791 | |
| 2028 | 20,184 | |
| 2029 | 9,826 | December 31 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, there are two tables that provide amortization amounts for the year ending December 31, 2029. One table shows an amortization expense of $83,808, while another table lists $9,826. It is important to note that these tables may represent different types of assets or expenses, so it is important to understand what each table represents.
Specifically, one table provides estimated amortization expenses for the years ending December 31, 2025 through 2029. The amounts range from $84,065 in 2025 to $83,808 in 2029, with a total estimated amortization expense of $729,814. The other table lists amounts for the years ending December 31, 2025 through 2029, with the 2029 amount being $9,826.
Prospective Exit franchisees should carefully review the notes and descriptions associated with each table in the FDD to understand what specific assets or expenses these amortization figures relate to. Understanding the nature of these amortized assets and their useful lives is crucial for projecting the profitability and cash flow of the franchise. Franchisees should also inquire about the accounting methods used to calculate amortization and how these methods may impact their financial statements.
It is also important to note that amortization is a non-cash expense, meaning it does not involve an actual outflow of cash. However, it does reduce taxable income, which can result in tax savings. Franchisees should consult with a qualified accountant or financial advisor to understand the tax implications of amortization and how it can benefit their business.