What was the total value of fixed assets, net, for Fat Shack at the end of 2024?
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's fixed assets are stated at cost and depreciated using the straight-line method over a 5-year useful life. As of December 31, 2024, Fat Shack's property and equipment included restaurant equipment purchased in June 2021 for $66,537. The accumulated depreciation for this equipment through December 31, 2024, was $32,051.
Additionally, property and equipment included a POS system placed into service in August 2017 at a cost of $9,354. By December 31, 2024, this POS system was fully depreciated, resulting in accumulated depreciation of $0.
To calculate the net fixed assets as of December 31, 2024, we subtract the accumulated depreciation from the original cost of the assets. For the restaurant equipment: $66,537 (original cost) - $32,051 (accumulated depreciation) = $34,486. For the POS system: $9,354 (original cost) - $9,354 (accumulated depreciation) = $0. Therefore, the total value of fixed assets, net, for Fat Shack at the end of 2024 is $34,486.