What was the assumed cash during the acquisition of My Salon Suite?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
ocated to the assets acquired and liabilities assumed by the Company based on third-party valuation studies and management estimates of their fair value in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, Business Combinations, on the date of acquisition.
The total purchase price was allocated as follows:
| Cash assumed during acquisition | $ 735,160 |
|---|---|
| Working capital | 97,369 |
| Right of use asset | 1,108,595 |
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, during the acquisition, the assumed cash was $735,160. This figure is part of the total consideration of $77,606,654, which includes various assets and liabilities. Other notable items include working capital of $97,369, a right-of-use asset valued at $1,108,595, and property and equipment worth $1,029,772.
Intangible assets make up a significant portion of the consideration, with the trade name valued at $52,950,000, program materials at $425,000, internally developed software at $80,000, and franchise agreements at $5,100,000. Additionally, goodwill is valued at $19,617,550.
There are also deferred revenue and lease liabilities, which are listed as negative values. Deferred revenue is reported as ($2,428,197), and lease liabilities are ($1,108,595). These figures provide a comprehensive overview of the assets acquired and liabilities assumed during the acquisition of My Salon Suite, offering insight into the financial structure of the transaction.