What was the amount of goodwill disposals for The Standardx during the year ended December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at January 1, 2023 | |
|---|---|
| Goodwill $ 1,465 $ 210 $ 1,589 $ 2 $ — $ 3,266 | |
| Accumulated impairment losses (4) (161) — — — (165) | |
| Goodwill, net $ 1,461 $ 49 $ 1,589 $ 2 $ — $ 3,101 | |
| Activity during the year | |
| Additions 62 — 39 — — 101 | |
| Foreign currency translation | |
| adjustments 3 — — — — 3 | |
| Balance at December 31, 2023 | |
| Goodwill 1,530 210 1,628 2 — 3,370 | |
| Accumulated impairment losses (4) (161) — — — (165) | |
| Goodwill, net $ 1,526 $ 49 $ 1,628 $ 2 $ — $ 3,205 | |
| Activity during the year | |
| Additions 86 — — — 336 422 | |
| Disposals — — (914) — — (914) | |
| Impairment losses (110) (15) (38) — — (163) | |
| Measurement period adjustments | |
| (Note 7) — — (1) — — (1) | |
| Foreign currency translation | |
| adjustment |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company had goodwill disposals amounting to $914 million during the year ended December 31, 2024. This disposal was specifically within the distribution segment of The Standardx's operations.
Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation and customer relationships, that are acquired when one company purchases another. When The Standardx disposes of a segment of its business, the goodwill associated with that segment must be removed from its balance sheet, resulting in a disposal.
For a prospective franchisee, this indicates the scale of changes and restructuring The Standardx undergoes. While goodwill disposals themselves aren't necessarily negative, they reflect significant business decisions that could impact the stability or strategic direction of the company. It would be prudent for a potential franchisee to understand the reasons behind such disposals and their potential long-term effects on the franchise system.