What was the value of right-of-use assets for Exit franchisees as of December 31, 2022?

According to Exit's 2025 Franchise Disclosure Document, the receipts show the value of franchise territories, organization costs, and total assets as of December 31, 2022. The franchise territories were valued at $4,089,613, with accumulated amortization of $2,097,776, resulting in a net carrying value of $1,991,837. Organization costs were $7,062, with accumulated amortization of $3,808, resulting in a net carrying value of $3,254. The total value of these assets as of December 31, 2022, was $4,096,675, with accumulated amortization of $2,101,584, and a net carrying value of $1,995,091.

These figures represent the book value of Exit's intangible assets, reflecting the initial cost less any amortization. Amortization is the systematic reduction of the intangible asset's value over its useful life, which for franchise territories ranges from 8 to 15 years. The net carrying value is what remains on the books after accounting for this amortization.

Prospective Exit franchisees should understand how these intangible assets are valued and amortized, as it can impact the financial statements of the franchise. It's also important to note that these values are subject to impairment reviews, which could further reduce the carrying amount if the asset's value is deemed unrecoverable. Understanding the terms and conditions of the franchise agreement, including renewal options, is crucial, as the company's future cash flows are impacted by its ability to extend or renew agreements related to these intangible assets.