What was the accumulated depreciation for Fat Shack's Restaurant Equipment as of December 31, 2023?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
the straight-line method over an estimated useful life of 5 years.
Property and equipment consist of Restaurant Equipment purchased during June 2021 in the amount of $66,537. Depreciation expenses for the year ended December 31, 2024, 2023 and 2022 was $6,876, $6,876 and $6,876, respectively. Accumulated depreciation as of December 31, 2024, 2023 and 2022 totaled $32,051, $25,175 and $18,299 respectively.
Property and equipment also included a POS system placed into service in August 2017 in the amount of $9,354. Depreciation expense for the year ended December 31, 2024, 2023 and 2022 was $0, $1,248 and $1,871, respectively. Accumulated depreciation as of December
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the accumulated depreciation for restaurant equipment as of December 31, 2023, was $25,175. The restaurant equipment was initially purchased in June 2021 for $66,537. Fat Shack uses the straight-line method to depreciate these assets over an estimated useful life of 5 years. The depreciation expense for the years ended December 31, 2024, 2023, and 2022 was consistently $6,876 per year.
In addition to restaurant equipment, Fat Shack also depreciates its POS (Point of Sale) system. The POS system was placed into service in August 2017 at a cost of $9,354. The accumulated depreciation for the POS system as of December 31, 2023, was $9,354, with depreciation expenses of $0 in 2024 and $1,248 in 2023.
Understanding the depreciation schedule for both restaurant equipment and the POS system is important for prospective Fat Shack franchisees. It provides insight into how these assets are valued over time for accounting purposes, which can affect the franchisee's financial statements and tax obligations. Franchisees should consult with a financial advisor to fully understand the implications of depreciation on their business.