What was the total value of The Standardx's goodwill as of December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||
|---|---|---|
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 1,011 | $ 881 |
| Restricted cash | 1 | 34 |
| Short-term investments | 372 | 15 |
| 1,121 | 883 | |
| Inventories | 8 | 9 |
| Prepaids and other assets | 174 | 195 |
| Prepaid income taxes | 46 | 51 |
| Assets held for sale | — | 62 |
| Total current assets | 2,733 | 2,130 |
| Equity method investments | 189 | 211 |
| Property and equipment, net | 1,689 | 2,340 |
| Financing receivables, net of allowances of $36 and $42 at December 31, 2024 and December 31, 2023, respectively | 368 | 73 |
| Operating lease right-of-use assets | 328 | 369 |
| Goodwill | 2,541 | 3,205 |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company's total goodwill as of December 31, 2024, was $2,541 million. Goodwill represents the intangible assets of a business, such as brand reputation and customer relationships, that are not separately identifiable. It arises when one company acquires another for a price higher than the net asset value.
For a prospective franchisee, this figure indicates the overall value The Standardx places on its brand and acquired entities. A substantial goodwill balance suggests that The Standardx has made significant investments in acquisitions or has a strong brand reputation. However, it's important to note that goodwill is subject to impairment, meaning its value can decrease if the underlying assets perform poorly.
The FDD also mentions that The Standardx recognized goodwill impairment charges of $15 million during the year ended December 31, 2024, related to the sales of certain hotels. Additionally, they recognized $148 million of goodwill impairment charges due to the carrying values of two reporting units exceeding their fair values. These impairments can affect the overall financial health of the company, and franchisees should monitor such changes. The company's consolidated goodwill balance as of December 31, 2024 was $2,541 million, of which $1,116 million related to the reporting unit.
It is important for potential franchisees to understand how The Standardx values and manages its goodwill, as it can impact the long-term stability and success of the franchise system. Further research into the company's financial statements and discussions with existing franchisees can provide additional insights into the implications of The Standardx's goodwill for franchisees.