What is the carrying amount for Pump It Up's trademarks and trade names?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
TE 4 GOODWILL AND INTANGIBLE ASSETS**
Goodwill as of, and changes in the carrying amount of goodwill during the years ended, December 31, 2023 and 2022, are as follows:
| State | Effective Date | |
|---|---|---|
| California | IN PROGRESS | |
| Illinois | IN PROGRESS | |
| Maryland | IN PROGRESS | |
| Michigan | IN PROGRESS | |
| Minnesota | IN PROGRESS | |
| New York | IN PROGRESS | |
| Virginia | IN PROGRESS | |
| Washington | IN PROGRESS | |
| Wisconsin | IN PROGRESS |
NOTE 4 GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Intangible assets and estimated remaining useful lives of intangible assets at December 31, 2023 and 2022, are as follows:
| Trademarks and Trade Names Franchise Contracts Total | Amount $ 5,628,000 2,882,039 $ 8,510,039 | Estimated Useful Life Indefinite 11 to 14 Years |
|---|
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the gross carrying amount for trademarks and trade names is $5,628,000. The net carrying amount for trademarks and trade names in 2022 was $5,628,000, while in 2023 it remained the same at $5,628,000. The trademarks and trade names have an indefinite estimated useful life.
The gross carrying amount for franchise contracts is $2,882,039. The net carrying amount for franchise contracts in 2022 was $899,298, while in 2023 it was $1,112,914. The franchise contracts have an estimated useful life of 11 to 14 years.
The total gross carrying amount for trademarks and trade names and franchise contracts is $8,510,039. The total net carrying amount in 2022 was $6,527,298, while in 2023 it was $6,740,914. Accumulated amortization for franchise contracts was $(1,982,741) in 2023 and $(1,769,125) in 2022.