What was the total value of customer relationship intangibles for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------|----------------------------------------------|-------------------------|----|-----------------------------|--|--------------------| | | Weighted average useful lives in years | Gross carrying value | | Accumulated amortization | | Net carrying value | | Management and hotel services agreement and | 19 | $ 1,368 | $ | (290) $ | | 1,078 | | franchise agreement intangibles | | | | | | | | Brand and other indefinite-lived intangibles | — | 806 | | — | | 806 | | Customer relationships intangibles | 10 | 410 | | (153) | | 257 | | Other intangibles | 10 | 35 | | (9) | | 26 | | Total | | $ 2,619 | $ | (452) $ | | 2,167 |
| | Gross carrying | Accumulated | Net carrying value | |----
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company provides details on customer relationship intangibles as part of its overall intangible assets. The gross carrying value of customer relationship intangibles is $410, with accumulated amortization of $153, resulting in a net carrying value of $257 as of December 31, 2024. This information is part of a larger table summarizing the fair value of identifiable net assets acquired. The weighted average useful life for these intangibles is 10 years.
These figures reflect The Standardx's accounting practices related to acquisitions and the valuation of intangible assets. Intangible assets like customer relationships are often valued based on projections of future revenue and expected customer retention. The amortization expense reflects the systematic reduction of the asset's value over its useful life, which in this case is estimated to be 10 years for customer relationships.
For a prospective franchisee, understanding these intangible asset valuations can provide insight into how The Standardx assesses the value of its brand and customer base. It also highlights the importance of maintaining and growing customer relationships, as these contribute to the overall financial health of the company. Reviewing the notes to the financial statements for further details on the valuation methods and assumptions used would be beneficial for a comprehensive understanding.