What was the book value of Mr. Sandless's property and equipment as of December 31, 2021?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
was $82,500 and $110,000, respectively.
The Company periodically receives funds from its members' or related companies. These advances are due on demand and do not bear interest. As of December 31, 2022, and 2021, the amount due to a related party was $300 and $14,224, respectively.
6. PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful life of the asset, which is five years. Expenditures for repairs and maintenance are charge
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the book value of their property and equipment as of December 31, 2021, was $19,944. The FDD also states that property and equipment are recorded at cost, with depreciation calculated using the straight-line method over an estimated useful life of five years. These assets include office equipment, computer equipment, and automobiles.
For a prospective franchisee, this indicates the depreciated value of Mr. Sandless's physical assets at that time. It's important to note that depreciation expenses for the years ended December 31, 2022, and 2021 were $13,191 and $14,091, respectively. This shows the level of depreciation Mr. Sandless was claiming on its assets.
It is important to note that the financial statements in the FDD are unaudited. Prospective franchisees should be aware that no independent certified public accountant has audited these figures or expressed an opinion on their content or form. Therefore, it is advisable to conduct thorough due diligence and possibly seek independent financial advice to verify these figures.