What was the accumulated amortization for Pump It Up as of December 31, 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Leasehold Improvements | $ 120,580 | $ 120,580 |
| Furniture and Fixtures | 1,310 | - |
| Computer Equipment | 3,280 | 3,280 |
| Total | 125,170 | 123,860 |
| Less: Accumulated Depreciation | (67,448) | (46,070) |
| Property, Plant, and Equipment, Net | $ 57,722 | $ 77,790 |
Depreciation expense for the years ended December 31, 2024 and 2023, was $21,379 and $21,239, respectively.
NOTE 4 GOODWILL AND INTANGIBLE ASSETS
Goodwill as of, and changes in the carrying amount of goodwill during the years e
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the accumulated amortization as of December 31, 2023, was $682,155. This figure represents the total amount of amortization that has been recognized up to that date. Amortization is the process of spreading the cost of an intangible asset over its useful life. In this case, it reflects the reduction in value of Pump It Up's intangible assets over time.
For a prospective franchisee, understanding accumulated amortization is crucial for assessing the financial health and stability of Pump It Up. A high accumulated amortization relative to gross amount may indicate that the company's intangible assets are aging or becoming less valuable. This could impact the future profitability and sustainability of the franchise system.
It is important to note that the 2025 FDD also lists the gross amount and net amount related to the accumulated amortization. As of December 31, 2023, the gross amount was $830,596 and the net amount was $148,441. These figures provide a more complete picture of the company's intangible assets and their value. Reviewing these figures can help potential franchisees evaluate the long-term financial prospects of investing in a Pump It Up franchise.
Additionally, the FDD indicates that the 2023 amortization expense was $83,060. This represents the amount of amortization recognized during that specific year. This information, combined with the accumulated amortization, can help potential franchisees understand the rate at which Pump It Up's intangible assets are being amortized and how this may impact future financial performance.