What was the total depreciation expense for Hydrodog for the year ended December 31, 2023?

According to Hydrodog's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2023, totaled $109,470. Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. For franchisees, understanding depreciation is crucial as it impacts the business's profitability and tax obligations.

This figure represents the amount by which Hydrodog's assets have decreased in value due to wear and tear, obsolescence, or other factors. It's important to note that depreciation is a non-cash expense, meaning it doesn't involve an actual outflow of cash. However, it does reduce the company's taxable income, which can result in tax savings.

Prospective franchisees should consider depreciation expenses when evaluating the financial performance of Hydrodog. While this figure relates to the franchisor's financial statements, it provides insight into how the company manages its assets and accounts for their decline in value. Franchisees may also incur their own depreciation expenses related to equipment and vehicles used in their mobile dog grooming businesses.