What was the depreciation and amortization amount for Lees Famous Recipe in 2022?

According to the 2025 FDD, Lees Famous Recipe's accumulated amortization related to the goodwill component was $136,318 as of December 31, 2022. This figure reflects the cumulative amount of amortization expense recognized up to that point in time related to goodwill acquired. Goodwill, in accounting terms, represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business acquisition. It is an intangible asset that is amortized over its useful life.

For a prospective Lees Famous Recipe franchisee, understanding accumulated amortization is crucial because it provides insight into how the value of acquired assets, specifically goodwill, is being recognized as an expense over time. This can affect the company's reported earnings and financial ratios. The amortization of goodwill impacts the net income reported on Lees Famous Recipe's income statement, which in turn affects profitability metrics that franchisees may use to assess the financial health and stability of the company.

It's important to note that this figure only relates to the accumulated amortization of goodwill from a specific agreement with Famous Recipe Group. It does not represent the total depreciation and amortization for all assets of Lees Famous Recipe. A potential franchisee should seek further clarification from the franchisor regarding the total depreciation and amortization expenses, as these broader figures would offer a more comprehensive view of the company's overall expense structure and asset management practices.

To gain a complete understanding, a prospective franchisee should request the full financial statements, including the income statement and balance sheet, to review all depreciation and amortization expenses. Additionally, understanding the details of the agreement with Famous Recipe Group and the nature of the acquired goodwill would provide further context for this amortization expense.