What was the net value of Expense Reduction Analysts' internal-use software in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
--| | Furniture and Fixtures | | 15,718 | | 20,163 | | Total Property and Equipment | | 33,748 | | 33,129 | | Less: Accumulated Depreciation | | (14,978) | | (17,588) | | Property and Equipment - Net | $ | 18,770 | $ | 15,541 |
NOTE 4 INTERNAL-USE SOFTWARE
Internal-Use Software is amortized on a straight-line basis over the estimated useful lives of the asset of 10 years. Software development costs of $35,430 and $40,834 were capitalized and included in Internal-Use Software on the balance sheets f
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, software development costs of $35,430 were capitalized and included in Internal-Use Software on the balance sheets for the year ended December 31, 2023. The software asset was not depreciated in 2022 but depreciation began in 2023, with a depreciation expense of $6,832 charged to operations for the year ending December 31, 2023.
This means that Expense Reduction Analysts invested in developing internal software, treating the costs as a capital asset rather than an immediate expense. Capitalizing these costs allows the company to spread the expense over the useful life of the software, which is estimated to be 10 years.
For a prospective franchisee, this indicates that Expense Reduction Analysts invests in technology to support its operations. The net book value of the software at the end of 2023 would be the capitalized cost less accumulated depreciation. In this case, the net value of Expense Reduction Analysts' internal-use software in 2023 is $28,598 ($35,430 - $6,832).