What was the total amount of accumulated depreciation for Pump It Up in 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
| 2023 | 2022 | |
|---|---|---|
| Leasehold Improvements | $ 120,580 | $ 120,580 |
| Computer Equipment | 3,280 | 3,280 |
| Total | 123,860 | 123,860 |
| Less: Accumulated Depreciation | (46,070) | (24,831) |
| Property, Plant, and Equipment, Net | $ 77,790 | $ 99,029 |
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 accumulated depreciation as of December 31, 2023, was $46,070. This figure represents the cumulative depreciation of the company's leasehold improvements and computer equipment. It is important to note that this amount specifically relates to these assets and does not include depreciation for other categories such as furniture and fixtures, which had no recorded value in 2023.
Accumulated depreciation is a contra-asset account that reduces the book value of assets on Pump It Up's balance sheet. The assets include leasehold improvements valued at $120,580 and computer equipment valued at $3,280, totaling $123,860. The accumulated depreciation of $46,070 reflects the amount of these assets' value that has been expensed over their useful lives up to the end of 2023. The net value of property, plant, and equipment, after deducting accumulated depreciation, was $77,790 as of December 31, 2023.
For a prospective Pump It Up franchisee, understanding accumulated depreciation is crucial for assessing the net value of the franchisor's assets and the overall financial health of the company. It also provides insight into how the company accounts for the wear and tear of its assets over time. This information, combined with other financial metrics, can help franchisees make informed decisions about the financial stability and investment potential of the franchise.