What is the estimated amortization expense for Precision Door Service in 2027?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Useful Life | Gross Amount | Accumulated Amortization | Net Amount | |
|---|---|---|---|---|
| Tradenames | 20 years | $ 886,322 | $ 57,733 | $ 828,589 |
| Franchise relationships | 15 years | 542,800 | 48,249 | 494,551 |
| National accounts | 15 years | 1,700 | 151 | 1,549 |
| Developed technology | 3 years | 400 | 178 | 222 |
| Total definite-lived intangibles | $ 1,431,222 | 106,311 | $ 1,324,911 | |
| Useful Life | Gross Amount | Accumulated Impairment | Net Amount | |
| Domain name | Indefinite | $ 1,314 | - | $ 1,314 |
| Total indefinite-lived intangibles | $ 1,314 | $ - |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain the estimated amortization expense for Precision Door Service for the year 2027. While the document mentions amortization expenses for previous years, such as 2023 and 2024, and indicates that estimated amortization expenses for the subsequent five years are available, the specific figures for each of those years are not included in the provided excerpts.
Without this information, a prospective franchisee cannot assess the projected amortization expenses for Precision Door Service in 2027. Amortization is a significant non-cash expense that reflects the reduction in value of intangible assets over time. Understanding this expense is crucial for evaluating the company's profitability and financial health.
To gain clarity, a potential Precision Door Service franchisee should directly request the franchisor to provide the specific estimated amortization expenses for each of the next five years, including 2027. This information will aid in a more comprehensive financial analysis and business planning.