What was the depreciation and amortization expense for Pump It Up in 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
quisition of Property and Equipment | | - | (68,087) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | Payments on Due to Member | (3,000,000) | (612,681) | | | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (630,433) | 546,336 | | | Cash and Cash Equivalents - Beginning of Year | 1,111,490 | 565,154 | | | CASH AND CASH EQUIVALENTS - END OF YEAR | $481,057 $ | 1,111,490 | |
FB HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net Income | $ 1,690,253 | $ 1,721,880 |
| Adjustments to Reconcile Net Income to Net Cash | ||
| Provided by Operating Activities: | ||
| Depreciation and Amortization | 318,055 | 317,915 |
| Change in Allowance for Doubtful Accounts | (145,660) | (8,414) |
| Noncash Lease Expense | (10,268) | 15,729 |
| Increase (Decrease) in Assets: | ||
| Accounts Receivable | 249,755 | 244,252 |
| Prepaid Expenses | (123) | (29) |
| Increase (Decrease) in Liabilities: | ||
| Accounts Payable | (1,670) | (898) |
| Accrued Expenses | (245,516) | 90,632 |
| Deferred Franchise Fees | 33,500 | (11,500) |
| Net Cash Provided by Operating Activities | 1,888,326 | 2,369,567 |
| CASH FLOWS FROM INVEST |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the total depreciation and amortization expense for the year 2023 was $317,915. This figure represents the accounting expense recognized for the reduction in value of Pump It Up's tangible (depreciation) and intangible (amortization) assets over that year.
For a prospective Pump It Up franchisee, understanding depreciation and amortization is crucial for assessing the financial health and profitability of the franchise. These expenses, while non-cash, reflect the wear and tear or obsolescence of assets used in the business. Higher depreciation and amortization expenses can indicate significant investments in equipment or intellectual property, which may require future replacement or renewal.
The FDD also provides a breakdown of these expenses in other sections. For example, depreciation expense specifically was $21,239 for 2023. Additionally, amortization expense for the year ended December 31, 2023, was $296,676. Analyzing these figures in conjunction with revenue and other operating expenses can give a potential franchisee a clearer picture of the long-term capital needs and potential return on investment for a Pump It Up franchise.
It's important to note that these figures reflect Pump It Up's corporate-level expenses and may not directly translate to the expenses a franchisee will incur. However, they provide a benchmark for understanding how the company manages its assets and accounts for their declining value over time. A prudent franchisee should consult with a financial advisor to project their own depreciation and amortization expenses based on their specific investment in property, plant, and equipment.