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What was the depreciation expense for Mr. Sandless for the year ended December 31, 2023?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

Beginning | (195,969) | (203,056) | | Members' Contributions/(Distributions) | (66,298) | 31,911 | | Members' (Deficit) - Ending | $ (163,069) | $ (195,969) |

MR. SANDLESS FRANCHISE, LLC STATEMENT OF CASHFLOWS

YEARS ENDED DECEMBER 31

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)

What This Means (2025 FDD)

According to Mr. Sandless's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2023, was $11,609. This figure reflects the reduction in value of Mr. Sandless's assets, such as office equipment, computer equipment, and automobiles, over that year.

Depreciation is an important factor for franchisees to consider as it represents a non-cash expense that impacts the profitability of the franchise. Understanding the depreciation expense can help a franchisee better assess the true cost of operating the business and plan for future capital expenditures. In Mr. Sandless's case, the company uses the straight-line method to depreciate its assets over an estimated useful life of five years.

Prospective franchisees should note that while depreciation is a standard accounting practice, the specific amount can vary depending on the assets owned by the franchisor and the depreciation method used. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive understanding of how Mr. Sandless manages its assets and expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.