What was the reported purchase price in the Lees Famous Recipe financial statements?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
OH Advertising Cooperative, Inc. as of December 31, 2022.
NOTE 9 - RELATED PARTY TRANSACTIONS (Continued)
During the years ended December 31, 2023 and 2022, the Company paid Lee's Famous Recipe Advertising Cooperative, Inc. and LFRC OH Adverting Cooperative, Inc. $626,167 and $393,235, respectively. No amounts were paid to the related parties in the period ended December 31, 2021.
NOTE 10 - ACQUISITIONS
LFRC Springfield, LLC:
On April 12, 2022, the Company acquired certain fixed assets from Far From Famous, LLC. The goodwill of approximately $600,000 arising from the acquisition consists largely of future earnings potential. The Company paid approximately $8,500,000 for the acquisition.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, on April 12, 2022, the company acquired certain fixed assets from Far From Famous, LLC, for approximately $8,500,000. This acquisition resulted in goodwill of approximately $600,000, primarily attributed to future earnings potential.
Additionally, in January 2024, Lees Famous Recipe acquired certain fixed assets and assumed a lease from Lumena, LLC, for approximately $375,000. This acquisition led to approximately $264,000 in goodwill.
In March 2024, the company executed a purchase agreement to acquire certain assets and assume certain liabilities from EJG Enterprises, Inc. for $11,534,000. However, the acquisition had not closed as of the date the financial statements were available.