What is the reported gross amount for Precision Door Service's franchise relationships?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 10,814 $ | 215,604 | $ 1,424,410 | | intangibles | | | | | |
| | 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, 2022, consisted of the following:
| Useful Life | Gross Amount | Accumulated Amortization | Net Amount | |
|---|---|---|---|---|
| Tradenames | 3-20 years | $ 995,347 | $ 60,525 | $ 934,822 |
| Franchise relationships | 15 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the gross amount for franchise relationships is listed as $610,292. This figure represents the initial investment Precision Door Service has made in establishing and supporting its franchise network. It is important to note that this amount does not reflect the current value or performance of these relationships, but rather the original cost.
This figure is part of a larger table detailing intangible assets, which also includes tradenames, national accounts, insurance company relationships, customer relationships, franchise rights, developed technology, and copyrights. These assets are amortized over time, reflecting their diminishing value as they are used. For franchise relationships, the amortization period is 15 years.
For a prospective franchisee, this information provides context on the financial structure of Precision Door Service. While the gross amount indicates the initial investment, the accumulated amortization and net amount offer a clearer picture of the current book value of these relationships. Understanding these figures can help a franchisee assess the overall financial health and stability of the franchise system.