What was the reported goodwill for Floors To Go as of December 31, 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
nditions 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
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Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the company's balance sheet reports goodwill as an asset. As of December 31, 2023, Floors To Go reported goodwill of $50,000.
Goodwill typically arises when a company acquires another business, and it represents the intangible assets that are not separately identifiable, such as brand reputation or customer relationships. For a prospective Floors To Go franchisee, the presence of goodwill on the franchisor's balance sheet indicates that Floors To Go has likely made acquisitions in the past.
It's important to note that goodwill is subject to impairment testing, meaning that Floors To Go must periodically assess whether the value of the goodwill has declined. If impairment is recognized, it could affect the company's financial position. However, the goodwill has remained consistent from 2023 to 2024, suggesting stability in this aspect of the company's assets.