What was the accumulated amortization for Hck Hot Chicken's intellectual property in 2024?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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Note 3 - Intangible assets
Intangible assets consist of the following intellectual property at December 31, 2024 and 2023:
| 9= | 2024 | - | 2023 | |
|---|---|---|---|---|
| Recipes, names, website, social media, pending trademarks | $ | 187,879 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the accumulated amortization for their intellectual property in 2024 was $39,663. This figure represents the total amount of amortization expense that has been recognized against the value of Hck Hot Chicken's intellectual property assets up to the end of 2024. Intellectual property includes recipes, names, website, social media, and pending trademarks. The net intellectual property value after deducting the accumulated amortization was $148,216 in 2024.
Amortization is the systematic reduction of the carrying value of an intangible asset, such as intellectual property, over its useful life. For a prospective Hck Hot Chicken franchisee, understanding the amortization of intellectual property can provide insight into how the franchisor values and manages its intangible assets. It also reflects the ongoing expense recognized as the intellectual property's value is used up over time.
The FDD also shows the accumulated amortization for 2023 was $27,138, and the net intellectual property was valued at $160,741. Reviewing these figures over multiple years can help a franchisee understand the trend and management of these assets. This information is typically found in the financial statements included in Item 21 of the FDD, which provides a snapshot of the franchisor's financial health and asset management practices.