What was the net value of My Salon Suite's goodwill 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 goodwill as of December 31, 2023, was $300,287,335. Goodwill represents the excess of consideration transferred over the fair value of the tangible and intangible net assets acquired by My Salon Suite. This figure is a snapshot of the overall financial health and acquisition strategy of the company at that specific point in time.
For a prospective franchisee, understanding the goodwill value can provide insights into the brand's strength and market position. A high goodwill value often indicates successful acquisitions and a strong reputation. However, it's important to note that goodwill is an intangible asset and its value can fluctuate based on various factors, including market conditions and the performance of acquired entities.
My Salon Suite evaluates goodwill for impairment whenever events or changes in circumstances indicate that the fair value of the entity may be below its carrying amount. This evaluation is in accordance with FASB ASC 350, Intangibles, Goodwill and Other. The company did not record any indications of impairment in 2023 related to goodwill or other intangibles. This suggests that My Salon Suite's management believed the value of its acquisitions was stable and performing as expected during that period.