When did Exit Company acquire Legacy Success Group, LLC?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | $ | 84,065 |
|---|---|---|
| 2026 | 84,065 | |
| 2027 | 84,065 | |
| 2028 | 83,997 | |
| 2029 | 83,808 | |
| Thereafter | 309,814 | |
| Total estimated amortization expense | $ 729,814 |
Goodwill
In accordance with update 2014-02 to the FASB Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other, the Company has elected to apply the accounting alternative for goodwill. The accounting alternative allows an entity to take goodwill relating to each business combination or reorganization event resulting in fresh-start reporting (amortizable unit of goodwill) and amortize it on a straight-line basis
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Corp. International acquired Legacy Success Group, LLC on January 1, 2018. The company recorded goodwill associated with this acquisition. During the year ended December 31, 2020, an additional $6,250 was assigned to goodwill in relation to the purchase agreement. The total goodwill associated with Legacy Success Group, LLC's reputation within its industry amounted to $24,973. Exit began amortizing this goodwill over a ten-year period starting January 1, 2018.
For a prospective Exit franchisee, this information provides insight into Exit's acquisition history and how it manages its financial assets. The goodwill associated with Legacy Success Group, LLC, reflects the value of its reputation and brand recognition at the time of acquisition. The amortization of goodwill over ten years is a standard accounting practice, allowing Exit to gradually expense the cost of the acquisition over its estimated useful life.
The FDD also notes that management determined there was no impairment related to this goodwill for the years ended December 31, 2024, 2023, and 2022. Amortization expense totaled $2,914 for each of those years. This indicates that Exit believes the value of Legacy Success Group, LLC, has been maintained since the acquisition. Franchisees may want to inquire about the performance and integration of Legacy Success Group, LLC, within Exit's overall business strategy to understand the benefits and synergies derived from the acquisition.