What was the gross value of Management Recruiters' trade name as of December 31, 2023?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Estimated useful life (in years) | Gross | Accumulated amortization | Net | ||||||
| Finite-lived intangible assets: | |||||||||
| Franchise agreements | 15 | $ | 25,556 | $ | (4,116) | $ 21,440 | |||
| Customer lists | 10 | - | - | - | |||||
| Purchased software | 7 | 3,200 | (1,029) | 2,171 | |||||
| Internally developed software | 5 | 2,683 | (498) | 2,185 | |||||
| Total finite-lived intangible assets | $ | 31,439 | $ | (5,643) | $ 25,796 | ||||
| Indefinite-lived intangible assets: | |||||||||
| Domain name | Indefinite | $ | 2,226 | $ | - | $ 2,226 | |||
| Trade name | Indefinite | 3,580 | - | $ 3,580 | |||||
| Total intangible assets | $ | 37,245 | $ | (5,643) | $ 31,602 |
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 trade name as of December 31, 2023, was $3,580. This valuation is categorized under indefinite-lived intangible assets, meaning it is not subject to amortization. The net value of the trade name is also reported as $3,580, indicating no accumulated amortization against it.
For a prospective Management Recruiters franchisee, this valuation reflects the financial importance Management Recruiters places on its brand name. Intangible assets like trade names are often key indicators of brand recognition and market presence, which can influence a franchisee's ability to attract clients and build a successful business. The consistent valuation of the trade name from 2022 to 2023 suggests a stable perception of its brand value.
It's important to note that while the trade name is considered an indefinite-lived asset, its actual value can fluctuate based on market conditions, brand reputation, and overall business performance. Franchisees should consider how Management Recruiters plans to maintain and enhance the trade name's value over time, as this directly impacts the strength of the brand they are investing in. Understanding the factors that contribute to the trade name's valuation can help franchisees assess the long-term potential of their investment.
Furthermore, the FDD also lists other intangible assets such as franchise agreements, customer lists, purchased software, and internally developed software. These assets, unlike the trade name, are finite-lived and subject to amortization. Reviewing the values and amortization schedules of these assets can provide a more comprehensive understanding of Management Recruiters' overall asset management and financial health.