What was the total amount of accumulated depreciation deducted from property and equipment for Focalpoint Coaching in 2024?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS | $ | 117,881 | $ | 102,789 |
|---|---|---|---|---|
| Cash | ||||
| Accounts receivable, including $18,184 and | ||||
| $18,334 of allowances for doubtful accounts for 2024 and 2023, respectively Prepaid expenses | 113,702 44,867 | 191,057 36,837 | ||
| Total current assets | $ | 276,450 | $ | 330,683 |
| PROPERTY AND EQUIPMENT, at cost | ||||
| Computer equipment | $ | 47,510 | $ | 32,573 |
| Furniture and fixtures | 21,698 | 21,698 | ||
| Software | 32,000 | 0 | ||
| $ | 101,208 | $ | 54,271 | |
| Less accumulated depreciation | (57,448) | (46,340) | ||
| $ | 43,760 |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the total accumulated depreciation deducted from property and equipment in 2024 was $57,448. This figure reflects the reduction in the book value of Focalpoint Coaching's assets due to wear and tear, obsolescence, or other factors over time. Accumulated depreciation is a contra-asset account, meaning it reduces the total value of the company's assets on the balance sheet.
For a prospective Focalpoint Coaching franchisee, understanding accumulated depreciation is important for assessing the financial health and capital investment requirements of the franchise. While this specific figure relates to the franchisor's financial statements, it provides context for how Focalpoint Coaching accounts for depreciation, which can be relevant if franchisees are required to purchase similar assets. Franchisees may want to inquire about what assets they will need to acquire and what depreciation schedules they should anticipate.
Depreciation is a standard accounting practice that allows businesses to spread the cost of assets over their useful lives. The FDD also notes that Focalpoint Coaching computes depreciation using the straight-line and declining balance methods. The straight-line method evenly distributes the cost of an asset over its life, while the declining balance method results in higher depreciation expenses in the early years of an asset's life. Understanding these methods can help a franchisee better project their own potential expenses and tax liabilities.
It is important to note that the FDD also states that maintenance and repairs of property and equipment are charged to operations, while major improvements are capitalized. This means that routine maintenance costs are expensed immediately, while significant upgrades that extend the life or value of an asset are added to the asset's book value and depreciated over time. Franchisees should understand these policies to properly account for their own expenses and investments in property and equipment.