What was the original cost of the Restaurant Equipment purchased by Fat Shack in June 2021?
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, 20
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the original cost of restaurant equipment purchased in June 2021 was $66,537. This equipment is considered a fixed asset and is depreciated using the straight-line method over an estimated useful life of 5 years.
Depreciation expenses for this equipment were $6,876 for each of the years ending December 31, 2024, 2023, and 2022. The accumulated depreciation as of December 31, 2024, totaled $32,051, while it was $25,175 as of December 31, 2023, and $18,299 as of December 31, 2022.
This information is relevant for prospective franchisees as it provides insight into the initial investment in restaurant equipment and how it is depreciated over time. Understanding depreciation can help franchisees with their financial planning and tax considerations. The consistent depreciation expense suggests a predictable reduction in the asset's value over its useful life, which can be factored into financial projections.