What was the net value of goodwill for Fast Fix Jewelry And Watch Repairs in 2022?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
ess than the carrying value, then impairment is deemed to have occurred. Management recorded no impairment to goodwill during the years ended December 31, 2023 and December 31, 2022.
| Goodwill, net at January 1, 2022 | $ 3,832,273 |
|---|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the net value of goodwill as of December 31, 2022, was approximately $3,214,993. Goodwill represents the excess of the purchase price over the fair value of net assets acquired during business combinations. It is amortized on a straight-line basis over ten years.
Goodwill is reviewed for impairment when events suggest its carrying value may not be recoverable. If the estimated fair value is less than the carrying value, impairment is recognized. However, for the years ending December 31, 2023, and 2022, management recorded no impairment to goodwill.
For a Fast Fix Jewelry And Watch Repairs franchisee, understanding goodwill and its amortization is crucial for interpreting the financial health of the company. The consistent amortization expense of $617,280 per year from 2022 through 2027, with a final amortization of $128,500 in 2028, impacts the company's net income. This also affects the franchisee's understanding of the overall financial statements and how the company manages its acquired assets.