What was the goodwill for Marble Slab Creamery as of December 29, 2024?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Goodwill and Other Intangible Assets
Intangible assets are stated at the estimated fair value at the date of acquisition and include goodwill, trademarks, and franchise agreements. Goodwill and other intangible assets with indefinite lives, such as trademarks, are not amortized but are reviewed for impairment annually or more frequently if indicators arise. All other intangible assets are amortized over their estimated weighted average useful lives. Management assesses potential impairments to intangible assets at least annually, or when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. Judgments regarding the existence of impairment indicators and future cash flows related to intangible assets are based on operational performance of the acquired businesses, market conditions and other factors. No impairment was identified as of December 29, 2024 and December 31, 2023.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 100–101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the company did not identify any impairment to goodwill as of December 29, 2024, or December 31, 2023. Goodwill is recorded at the estimated fair value at the date of acquisition. It is not amortized but is reviewed for impairment annually or more frequently if indicators arise.
Goodwill, along with trademarks and franchise agreements, are considered intangible assets. Marble Slab Creamery's management assesses potential impairments to these intangible assets at least annually, or when there is evidence of events or changes in circumstances that indicate the carrying amount of an asset may not be recoverable. These judgments are based on the operational performance of acquired businesses, market conditions, and other factors.
For a potential Marble Slab Creamery franchisee, this indicates that the franchisor believes the value of its intangible assets, including goodwill, is stable and not declining. This can be a positive sign, suggesting the brand and its associated assets are maintaining their value. However, it's important to note that these assessments are based on management's judgment and are subject to change based on future events and circumstances.