What is the annual amortization expense for each intangible asset of Zoomin Groomin?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
inventory has been sold.
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Accounts Receivable
Accounts receivable are recorded for amounts due based on the terms of executed franchise agreements for franchise sales, royalty fees, and other revenues. These receivables are carried at original invoice amount less an estimate made for doubtful receivables, based on a review of outstanding amounts. At December 31, 2024, the Company had accounts receivables of $386,516, and all accounts are deemed collectible.
Other Assets
The Company has three intangible assets consisting of contracts valued at $30,000, goodwill valued at $30,000, and trademarks valued at $30,000. The equal allocation
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company has three intangible assets: contracts, goodwill, and trademarks, each valued at $30,000. These assets are amortized over a 15-year period using the straight-line method.
For a Zoomin Groomin franchisee, this means that the annual amortization expense for each of these intangible assets is $2,000 per year. This amortization began with the year ending December 31, 2021. The assets are presented on the balance sheet at their net value as Intangible Assets.
The total amortization expense for all intangible assets combined is $6,000 per year for the next five years. This consistent amortization schedule provides a predictable expense for Zoomin Groomin, which can be factored into financial planning and reporting.