What was the gross value of Management Recruiters' internally developed software as of December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ars ended December 31, 2022 and December 31, 2021, respectively.
Note 10 – Intangible Assets
The following table reflects our intangible assets (in thousands except useful life):
| December 31, 2022 | December 31, 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Estimated useful life (in years) | Gross | Accumulated amortization Net | Gross | Accumulated amortization | Net | |||||
| Finite-lived intangible assets: | ||||||||||
| Franchise agreements | 15 | $ | 25,556 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the gross value of its internally developed software as of December 31, 2022, was $2,294. This figure represents the initial cost of the software before accounting for any amortization. The estimated useful life of this software is 5 years.
For a prospective franchisee, this indicates Management Recruiters invests in its own software development, which is considered an asset. The value reported reflects the cumulative investment in these software systems. However, because software depreciates, the net value, which accounts for accumulated amortization, was $2,256 as of the same date.
It's important to note that Management Recruiters amortizes these costs over the software's useful life, which impacts the net value reported on their financial statements. The difference between the gross and net values shows the accumulated amortization. This amortization reflects the reduction in the software's value over time, as it becomes outdated or is replaced by newer technology.