What is the projected amortization expense related to goodwill for Monicals Pizza for the year 2026?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
air value of net assets acquired, is being amortized on a straight-line basis over 10 years. Amortization expense related to goodwill was $73,039 and $44,281 for the years ended December 31, 2024 and 2023, respectively. The
Company evaluates goodwill for impairment whenever events occur, or circumstances change, that indicate that the fair value of the entity may be below its carrying amount. No impairment loss adjustment was deemed necessary for the years ended December 31, 2024 and 2023. The weighted average remaining amortization period for goodwill is approximately 8.8 years.
Amortization expense related to goodwill for the years ended after December 31, 2024 is as follows:
| 2025 | $ 66,607 |
|---|---|
| 2026 | 57,60 |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the amortization expense related to goodwill for the years ended after December 31, 2024, is provided. However, the specific amortization expense for the year 2026 is not listed in the provided documentation.
While the document mentions that goodwill is amortized on a straight-line basis over 10 years, and provides the amortization expenses for the years ended December 31, 2024 ($73,039) and December 31, 2023 ($44,281), it does not extend the projection to 2026. The weighted average remaining amortization period for goodwill is approximately 8.8 years as of December 31, 2024.
A prospective Monicals Pizza franchisee should inquire with the franchisor about the projected amortization expense for 2026 to gain a clearer understanding of the expected financial performance and potential profitability of the franchise. This information is crucial for making informed investment decisions and assessing the long-term financial viability of the franchise.