What was the net value of My Salon Suite's fixed assets as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
nue as a going concern for a reasonable period of time.
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April 28, 2025
Consolidated Balance Sheets
| As of December 31, | 2024 | 2023 |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 3,381,206 | $ 8,047,052 |
| Accounts receivable - net | 5,930,192 | 5,374,191 |
| Current portion of notes receivable - net | 74,080 | 66,427 |
| Amounts due from affiliates | 632,545 | 486,028 |
| Prepaid expenses | 3,809,171 | 1,956,054 |
| Other current assets | 663,352 | 736,544 |
| Total current assets | 14,490,546 | 16,666,296 |
| Fixed assets |
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, the net value of fixed assets as of December 31, 2023, was $12,961,306. This figure represents the value of My Salon Suite's property, plant, and equipment after accounting for accumulated depreciation. These assets are essential for My Salon Suite's operations and include items such as furniture, equipment, leasehold improvements, and software.
For a prospective franchisee, understanding the net value of fixed assets provides insight into the company's financial health and investment in its infrastructure. A higher net value of fixed assets may indicate a strong foundation and commitment to maintaining quality facilities. It's important to note that these assets are subject to depreciation, which reflects the gradual decline in their value over time.
My Salon Suite calculates depreciation using the straight-line method over the estimated useful lives of the assets. Furniture, equipment, and internally developed software are depreciated over three to seven years, while leasehold improvements are amortized over the shorter of the lease term or the asset's useful life. The company also reviews fixed assets for impairment, recognizing a $323,146 impairment as of December 31, 2023. This indicates that the company assesses whether the carrying value of its assets is recoverable and adjusts the value accordingly if necessary.