What was the net property and equipment value for Mr. Sandless as of December 31, 2022?
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 net book value of property and equipment as of December 31, 2022, was $7,290. These assets include office equipment, computer equipment, and automobiles, which are depreciated using the straight-line method over an estimated useful life of five years. This figure represents the depreciated value of these assets after accounting for accumulated depreciation.
For a prospective franchisee, this indicates the level of investment Mr. Sandless has in its own physical assets. The relatively low figure suggests that Mr. Sandless may not require substantial capital investment in fixed assets to operate its franchise system. This could mean lower overhead costs for the franchisor, but it's important to consider how this might affect the support and resources available to franchisees.
It's also worth noting that the depreciation expense for the year ended December 31, 2022, was $13,191. This expense reflects the reduction in value of the property and equipment over the year. Reviewing these figures over several years can provide insight into Mr. Sandless's capital expenditure and asset management strategies. Prospective franchisees should consider these factors as part of their due diligence to understand the financial health and operational efficiency of the franchisor.