What were the net intangible assets for Expense Reduction Analysts in 2024?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
he years ended:
| 2025 | 18,299 |
|---|---|
| 2026 | 18,299 |
| 2027 | 18,299 |
| 2028 | 18,299 |
| 2029 | 18,299 |
| Thereafter | 66,362_ 157,857 |
NOTE 5 INTANGIBLE ASSETS
Intangible assets consisted of the following at December 31:
| 2024 | 2023 | |
|---|---|---|
| Area Development License Rights |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the company's net intangible assets totaled $5,814,891 as of December 31, 2024. This figure is calculated by taking the total intangibles, which amounted to $6,349,591, and subtracting the accumulated impairment of $534,700.
Intangible assets typically include items like franchise rights and area development license rights, which for Expense Reduction Analysts, totaled $4,000,000 and $2,349,591 respectively in 2024. These assets are not amortized but are tested for impairment at least annually. This means Expense Reduction Analysts assesses the fair value of its reporting units against their carrying amount to determine if any impairment has occurred.
For a prospective franchisee, understanding the net intangible assets is crucial because it reflects the value Expense Reduction Analysts places on its brand, licenses, and rights. The annual impairment testing ensures that these assets are accurately valued, and any significant changes could impact the company's financial stability. Therefore, it's important for franchisees to monitor these figures and understand the factors that could influence the valuation of these intangible assets.