What was the balance of goodwill for Precision Door Service as of December 31, 2022?

According to Precision Door Service's 2025 Franchise Disclosure Document, the balance of goodwill as of December 31, 2022, was $1,728,584. This figure represents the intangible asset value associated with Precision Door Service's brand reputation, customer relationships, and other factors that contribute to its overall value beyond its tangible assets. Goodwill is often created through acquisitions, where the purchase price exceeds the fair value of the acquired company's net identifiable assets.

It's important to note that this goodwill balance can fluctuate over time due to various factors, such as adjustments for unrealized gains or losses on foreign currency. For example, there was an adjustment of $4,069 to goodwill for unrealized gain/loss on foreign currency, which affected the balance as of December 31, 2023. These adjustments reflect the impact of currency exchange rate changes on the value of Precision Door Service's international operations or assets.

For a prospective franchisee, understanding the goodwill balance can provide insights into the perceived value and stability of the Precision Door Service brand. A strong goodwill balance may indicate a well-established brand with a positive reputation, which can be beneficial for attracting customers and building a successful franchise. However, it's also crucial to consider how goodwill is maintained and managed over time, as it can be subject to impairment if the brand's value declines.