What was the total cost of furniture and equipment depreciated by Goldfish Swim School in 2022?
Goldfish_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Depreciable | |||||
|---|---|---|---|---|---|
| 2023 | 2022 | 2021 | Life - Years | ||
| Furniture and equipment | $685,132 | $770,502 | $762,105 | 5-10 | |
| Software | 448,684 | 458,881 | 458,881 | 3 | |
| Building improvements | 443,206 | 435,681 | 435,681 | 15 | |
| Total cost | 1,577,022 | 1,665,064 | 1,656,667 | ||
| Accumulated depreciation | 1,180,055 | 1,152,024 | 932,431 | ||
| Net property and equipment | $396,967 | $513,040 | $724,236 | ||
| Long-term | |||||
| --- | --- | ||||
| obligations under | |||||
| capital leases | $1,580,792 |
Source: Item 23 — RECEIPTS (FDD pages 77–389)
What This Means (2025 FDD)
According to Goldfish Swim School's 2025 Franchise Disclosure Document, the total cost of furniture and equipment depreciated in 2022 was $770,502. This figure represents the original cost of these assets before accounting for any depreciation. Depreciation is an accounting method used to allocate the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear, obsolescence, or other factors.
For a prospective Goldfish Swim School franchisee, understanding the depreciable life of assets like furniture and equipment is crucial for financial planning and tax purposes. The FDD states that furniture and equipment are depreciated over a period of 5 to 10 years. This means that a portion of the initial investment in these assets can be deducted as an expense each year, reducing the franchisee's taxable income. The specific depreciation method used (e.g., straight-line, accelerated) can impact the amount of depreciation expense recognized each year.
It's important to note that the accumulated depreciation for furniture and equipment was $1,152,024 in 2022. This number represents the total depreciation that has been recorded on these assets since they were originally purchased. The net property and equipment value, which is the difference between the total cost and accumulated depreciation, was $513,040 in 2022. This figure reflects the book value of the furniture and equipment at that point in time.
Franchisees should consult with a qualified accountant or tax advisor to determine the most appropriate depreciation methods and strategies for their specific circumstances. Understanding these concepts can help franchisees make informed decisions about asset management and minimize their tax liabilities.