What was the total amount of accumulated impairment losses for The Standardx at December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Management and franchising | Owned and leased | Distribution (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 | — | 39 | — | — | 101 |
| Foreign currency translation | 3 | — | — | — | — | 3 |
| adjustments | ||||||
| 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 | — | — | (1) | — | — | (1) |
| (Note 7) | ||||||
| Foreign currency translation | (7) | — | — | — | (1) | (8) |
| adjustments | ||||||
| Balance at December 31, 2024 | ||||||
| Goodwill | 1,609 | 210 | 713 | 2 | 335 | 2,869 |
| Accumulated impairment losses | (114) | (176) | (38) | — | — | (328) |
| Goodwill, net | $ 1,495 | $ 34 | $ 675 | $ 2 | $ 335 | $ 2,541 |
(1) At December 31, 2023, one of our
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the total accumulated impairment losses as of December 31, 2024, were $(328). This figure represents the cumulative reduction in the book value of The Standardx's assets due to impairment. Impairment losses are recognized when the carrying amount of an asset exceeds its recoverable amount, indicating that the asset's value has declined.
The accumulated impairment losses are broken down by segment. For the Management and franchising segment, the accumulated impairment losses were $(114). The Owned and leased segment had accumulated impairment losses of $(176), and the Distribution segment reported $(38) in accumulated impairment losses. There were no accumulated impairment losses for the Overhead or Unallocated segments.
Prospective franchisees should understand that impairment losses can affect The Standardx's profitability and financial stability. While these losses do not directly impact franchisees' day-to-day operations, they reflect the overall financial health of the company, which can indirectly affect the support and resources available to franchisees. It is important to consider these figures as part of a comprehensive assessment of The Standardx's financial condition.