What was the book value of Mr. Sandless' property and equipment as of December 31, 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, 2023, and 2022, the amount due to a related party was $0 and $300, 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 charged to expense as incurred. Property and equip
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless' 2025 Franchise Disclosure Document, the book value of its property and equipment as of December 31, 2023, was $64,898. The FDD also provides the book value for the preceding year, December 31, 2022, which was $7,290.
Mr. Sandless calculates depreciation using the straight-line method over an estimated useful life of five years for its assets. These assets include office equipment, computer equipment, and automobiles. This depreciation method evenly distributes the cost of an asset over its useful life, which can impact the reported book value each year.
Prospective franchisees should note that these figures are based on financial statements that have been audited. Understanding the depreciation methods and asset valuation can be crucial for assessing the financial health and stability of Mr. Sandless. Reviewing these figures over several years can provide insights into the company's investment in its infrastructure and equipment.