What was the net goodwill for The Standardx at January 1, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | Overhead | Unallocated (2) | Total | |||
|---|---|---|---|---|---|---|
| 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 | — |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the net goodwill at January 1, 2023, was $3,101. This total is derived from several components across different segments of The Standardx's operations. Specifically, the management and franchising segment had a net goodwill of $1,461, the owned and leased segment had $49, and the distribution segment had $1,589. The overhead segment contributed $2, while the unallocated segment had no goodwill at that time.
Goodwill represents the intangible assets acquired in business combinations, such as brand reputation and customer relationships, less any accumulated impairment losses. The accumulated impairment losses, which reduce the value of goodwill, totaled $165 at the start of 2023. These losses were allocated to the management and franchising segment ($4) and the owned and leased segment ($161), with no impairment losses recorded for the distribution, overhead, or unallocated segments.
For a prospective franchisee, understanding the composition and changes in goodwill can provide insights into The Standardx's acquisition strategy and the performance of its various business segments. Monitoring goodwill and associated impairment losses may help franchisees assess the overall financial health and stability of The Standardx. Significant impairment losses could indicate challenges in integrating acquired businesses or declines in the value of intangible assets.