What was the net property and equipment value for Mr. Sandless as of December 31, 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
any periodically receives funds from its members' or related companies. These advances are due on demand and do not bear interest. As of December 31, 2024 and 2023, the amount due to a related party was $0 and $0, 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 equipment consist of office equipment, computer eq
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, 2023, was $64,898. The FDD also notes 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 figure provides insight into the tangible assets Mr. Sandless owns and utilizes in its operations. The depreciation method and asset types are typical for a franchise system, but it's important to note that these figures reflect the franchisor's assets, not those of individual franchisees.
Understanding the franchisor's asset management practices can help a franchisee assess the financial stability and operational efficiency of Mr. Sandless. Reviewing the depreciation expenses for 2024 ($21,196) and 2023 ($11,069) can also provide insight into the rate at which these assets are being utilized and replaced.