What was the goodwill amount for Floors To Go as of December 31, 2022?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
dgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Balance Sheets
| December 31 | |||
|---|---|---|---|
| ASSETS | |||
| Current | 2023 | 2022 | |
| assets | |||
| Cash | $ 812,308 | $ 1,679,740 | |
| Accounts | |||
| receivable, | |||
| less | |||
| allowance | |||
| for | |||
| credit | |||
| losses | 461,463 | 383,451 | |
| of | |||
| $27,615 | |||
| ($19,131 | |||
| in | |||
| 2022) | |||
| Prepaid | 3,189 | 3,189 | |
| expenses | |||
| Total | 1,276,960 | 2,066,380 | |
| current | |||
| assets | |||
| Goodwill | 50,000 | 50,000 | |
| Total | $ 1,326,960 | $ 2,116,380 | |
| assets | |||
| LIABILITIES |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, the company's goodwill as of December 31, 2022, was valued at $50,000. Goodwill is an intangible asset that represents the value of a company's brand name, customer relationships, intellectual property, and any competitive advantages. It is often acquired during a business acquisition, reflecting the portion of the purchase price that exceeds the fair market value of the tangible assets.
For a prospective Floors To Go franchisee, understanding the franchisor's goodwill can be important. While the franchisee does not directly 'own' a portion of this goodwill, a strong brand reputation can contribute to the success of individual franchise locations. The consistent goodwill value suggests that the Floors To Go brand has maintained a stable reputation and market position over the period reflected in the document.
It is important to note that upon termination or refusal to renew the franchise agreement, the franchisee will not have any interest in the goodwill or intangibles of the franchised business, apart from the leasehold, fixtures, equipment, and supplies purchased. This is a standard clause in many franchise agreements, emphasizing that the brand's goodwill remains the property of the franchisor. Therefore, while franchisees benefit from the brand's reputation during their operation, they do not retain any equity in that goodwill after the franchise term ends.