What was the amount of accumulated depreciation subtracted from property and equipment for Focalpoint Coaching in 2023?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROPERTY AND EQUIPMENT, at cost | ||||||
|---|---|---|---|---|---|---|
| Computer equipment | $47,510 | $32,573 | ||||
| Furniture and fixtures | 21,698 | 21,698 | ||||
| Software | 32,000 $101,208 | $54,271 | 0 | |||
| Less accumulated depreciation | (57,448) $43,760 | (46,340) $7,931 |
Source: Item 23 — Receipts (FDD pages 57–259)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the accumulated depreciation subtracted from property and equipment in 2023 was $46,340. This figure reflects the total depreciation expense recognized on the company's assets up to the end of 2023. It is subtracted from the original cost of the assets to arrive at the net book value reported on the balance sheet.
For a prospective Focalpoint Coaching franchisee, understanding accumulated depreciation is important for assessing the net value of the franchisor's assets. While franchisees do not directly own these assets, the financial health of the franchisor can impact the support and resources available to franchisees. A significant increase in accumulated depreciation could signal aging assets or a need for future capital expenditures.
It's also worth noting that depreciation is a non-cash expense, meaning it does not represent an actual outflow of cash. Instead, it is an accounting method used to allocate the cost of an asset over its useful life. Reviewing the franchisor's financial statements, including the balance sheet and income statement, provides a more comprehensive view of their financial performance and asset management strategies.