What was the total gross value of Management Recruiters' intangible assets as of December 31, 2020?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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Note 10 – Intangible Assets
The following table reflects our intangible assets:
| December 31, 2021 | December 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|
| Estimated useful | Accumulated | Accumulated | |||||
| life (in years) | Gross | amortization | Net | Gross | amortization | Net | |
| Finite-lived intangible assets: | |||||||
| Franchise agreements | 15 | $ 19,916,453 | $ (1,068,864) $ 18,847,589 | $ - | $ - | $ - | |
| Customer lists | 10 | 2,088,800 | (239,104) | 1,849,696 | - | - | - |
| Purchased software | 7 | 3,200,089 | (114,289) | 3,085,800 | - | - | - |
| Internally developed software | 7 | 916,304 | - | 916,304 | 342,697 | - | 342,697 |
| Total finite-lived intangible | |||||||
| assets | $ 26,121,646 | $ (1,422,257) $ 24,699,389 | $ 342,697 | $ - | $ 342,697 | ||
| Indefinite-lived inta |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the total gross value of their intangible assets as of December 31, 2020, was $342,697. This figure represents the combined value of internally developed software, which is considered a finite-lived intangible asset by Management Recruiters.
It is important to note that in 2020, Management Recruiters only reported internally developed software as an intangible asset. This means that other intangible assets such as franchise agreements, customer lists, and domain names had not yet been acquired or developed to a point where they were recognized on the balance sheet.
For a prospective franchisee, this information provides insight into the historical asset base of Management Recruiters. While the intangible assets were relatively low in 2020, they significantly increased by 2021 and 2022, indicating growth through acquisitions or internal development of assets like software and brand recognition. This trend could suggest a growing and evolving business model for Management Recruiters.