What was the reported equipment expense for Face Foundrie in 2023?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Equipment | $12,023 | $7,467 | $7,466 |
| Accumulated depreciation | (3,984) | (2,437) | (889 ) |
| $8,039 | $5,030 | $6,577 |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the equipment expense in 2023 was $7,467 before accumulated depreciation. After accounting for accumulated depreciation of $2,437, the net equipment value was $5,030.
This figure represents the cost of equipment before accounting for depreciation. Depreciation is the reduction in the value of an asset over time, due to wear and tear, obsolescence, or other factors. The accumulated depreciation represents the total depreciation that has been recognized on the equipment up to that point in time.
For a prospective franchisee, understanding these figures is crucial for financial planning. The initial equipment expense is a capital expenditure that impacts startup costs. The accumulated depreciation affects the net book value of the equipment, which is relevant for tax purposes and assessing the overall financial health of the business. Reviewing these figures over multiple years, as presented in the table, can also reveal trends in equipment investment and depreciation rates, which can inform future capital expenditure budgets.