Over what period does Focalpoint Coaching amortize its trademarks?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
Trademarks are carried at cost less accumulated amortization and are reviewed for impairment at least annually.
Trademarks amortized over a 15 year useful life are as follows:
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Focalpoint Coaching FDD, the company amortizes its trademarks over a 15-year useful life. This means that the initial cost of the trademarks is spread out as an expense over a period of 15 years, rather than being recognized entirely in the year of purchase.
For a prospective Focalpoint Coaching franchisee, this information is relevant because it provides insight into how the company values and accounts for its intangible assets. Trademarks are a crucial part of the Focalpoint Coaching brand, and understanding their amortization period can help franchisees assess the long-term financial strategy of the company.
It's important to note that the FDD also mentions that Focalpoint Coaching reviews its trademarks for impairment at least annually. This means that if the value of the trademarks decreases significantly, the company may need to recognize an impairment charge, which could affect its financial statements. Franchisees should consider this when evaluating the financial health and stability of Focalpoint Coaching.