What was the total value of Monicals Pizza's goodwill, net, in 2022?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the net goodwill in 2022 was $576,015. This figure represents the intangible asset value associated with the acquisition of net assets, reflecting the excess of the purchase price over the fair value of identifiable net assets acquired.

Goodwill, in accounting terms, typically arises when one company acquires another. It represents the value of the acquired company's brand reputation, customer relationships, intellectual property, and other intangible assets that aren't separately identified. The quoted table provides a snapshot of how Monicals Pizza accounted for an acquisition, allocating portions of the purchase price to identifiable assets like land ($52,590) and the remainder to goodwill.

For a prospective Monicals Pizza franchisee, understanding goodwill is crucial because it reflects the established brand value they are investing in. A strong goodwill figure suggests a well-regarded brand with customer loyalty, which can positively impact the franchisee's business. However, it's important to note that goodwill is subject to impairment if the fair value of the acquired business declines, which could affect the company's financial position.