What was the depreciation amount for Fat Shack in 2023?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
r the years ended December 31, 2024, 2023 and 2022, respectively.
Fixed Assets - Fixed assets are stated at cost. Depreciation is provided by utilizing 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 company uses the straight-line method to depreciate fixed assets over an estimated useful life of 5 years. For Restaurant Equipment purchased in June 2021 for $66,537, the depreciation expense for the year ended December 31, 2023, was $6,876. The accumulated depreciation for this equipment as of December 31, 2023, totaled $25,175.
Additionally, Fat Shack had a POS system placed into service in August 2017 for $9,354. The depreciation expense for the POS system for the year ended December 31, 2023, was $1,248. The accumulated depreciation for the POS system as of December 31, 2023, totaled $9,354.
Therefore, the total depreciation amount for Fat Shack in 2023, considering both the Restaurant Equipment and the POS system, was $8,124 ($6,876 + $1,248). A prospective franchisee should note that depreciation amounts can vary depending on the assets and their respective useful lives, and this information is based on Fat Shack's specific accounting practices.