What is the net amount of the 'Total definite-lived intangibles' for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
llows:
| 2025 | $ 14,850 |
|---|---|
| 2026 | 14,850 |
| 2027 | 14,850 |
| 2028 | 754,850 |
| 2029 | 385,075 |
| Thereafter | 414,438 |
| $ 1,598,913 |
Notes to Consolidated Financial Statements ($000's)
4. Intangible Assets and Goodwill
Intangible assets as of December 31, 2024, consisted of the following:
| | Useful Life | Gross Amount | Accumulated Impairment | Accumulated Amortization | Net Amount | |----------------------------------------|----------------|--------------------|---------------------------|-----------------------------|-----------------| | | | | | | | | Tradenames | 3-20 years | $ 996,297 $ | 10,248 $ | 158,895 | $ 827,154 | | Franchise relationships | 15 years | 612,607 | 418 | 135,273 | 476,916 | | National accounts | 15 years | 3,248 | 148 | 624 | 2,476 | | Insurance company | | | | | | | relationships | 15 years | 2,300 | - | 511 | 1,789 | | Customer relationships | 3-10 years | 17,834 | - | 7,612 | 10,222 | | Franchise rights | 1-7 years | 12,200 | - | 5,154 | 7,046 | | Developed technology | 3 years | 720 | - | 631 | 89 | | Copyrights | 5 years | 140 | - | 93 | 46 | | Total definite-lived | | | | | | | intangibles | | $ 1,645,347 $ | 10,814 $ | 308,793 | $ 1,325,738 | | | Useful Life | Gross Amount | Accumulated Impairment | | Net Amount | | Domain name | Indefinite | $ 1,314 | - | | $ 1,314 | | Total indefinite-lived | | $ 1,314 | - | | $ 1,314 | | intangibles | | | | | | Intangible assets as of December 31, 2023, consisted of the following:
| Useful Life | Gross Accumulated Amount Impairment | Accumulated Amortization | Net Amount | ||
|---|---|---|---|---|---|
| Tradenames | 3-20 years $ | 1,001,190 $ | 10,248 $ | 111,600 $ | 879,342 |
| Franchise relationships | 15 years | 613,289 | 418 | 94,631 | 518,240 |
| National accounts | 15 years | 3,138 | 148 | 424 | 2,566 |
| Insurance company | |||||
| relationships | 15 years | 2,300 | - | 358 | 1,942 |
| Customer relationships | 3-10 years | 17,848 | - | 4,594 | 13,254 |
| Franchise rights | 1-7 years | 12,200 | - | 3,495 | 8,705 |
| Developed technology | 3 years | 720 | - | 436 | 284 |
| Copyrights | 5 years | 143 | - | 66 | 77 |
| Total definite-lived | |||||
| intangibles | $ Useful | 1,650,828 $ Gross | 10,814 $ | 215,604 Accumulated | $ 1,424,410 |
| Useful Life | Gross Amount | Accumulated Impairment | Net Amount | ||
| --------------------------------------- | ---------------- | ----------------- | --------------------------- | ------------ | |
| Domain name | Indefinite $ | 1,314 | - $ | 1,314 | |
| Total indefinite-lived | $ | 1,314 | - | 1,314 | |
| intangibles | $ |
Notes to Consolidated Financial Statements ($000's)
Amortization expense was $96,830 and $96,710 for the years ended December 31, 2024 and 2023, respectively. Estimated amortization expense for the subsequent five years is as follows:
| 2025 | $ 95,561 |
|---|---|
| 2026 | 95,463 |
| 2027 | 94,618 |
| 2028 | 92,964 |
| 2029 | 91,718 |
| Thereafter | 855,410 |
| $ 1,325,738 |
Goodwill
The Company has assigned goodwill to its reporting units based on fair valuation analysis completed for the acquisition of the parent by KKR and from the Company's acquisitions on September 1, 2021, and any subsequent acquisitions.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the net amount of total definite-lived intangibles varies across different periods. One table shows the net amount of total definite-lived intangibles as $1,325,738. Another table indicates a net amount of $1,324,911. A further table lists the net amount as $1,250,360. Finally, another table shows the net amount as $1,339,870. These figures reflect the value of assets like tradenames, franchise relationships, and developed technology, after accounting for accumulated amortization and impairment.
These intangible assets are amortized over their useful lives, with tradenames amortized over 3 to 20 years, franchise and national accounts relationships over 15 years, customer relationships over 3 to 10 years, reacquired franchise rights over 1 to 7 years, copyrights over 5 years, and developed technology over 3 years, all using the straight-line method. The domain name is considered an indefinite-lived intangible asset and is not amortized but is subject to annual impairment testing.
For a prospective Precision Door Service franchisee, understanding these intangible assets is crucial because they represent a significant part of the company's value. The amortization of these assets affects the company's financial statements and, potentially, its profitability. Furthermore, the varying net amounts across different periods suggest that the value of these intangibles can change over time due to amortization, impairment, or other factors. A potential franchisee should inquire about the specific factors that influence these changes and how they might affect the franchisee's investment and returns.