What intangible assets does Zoomin Groomin have, and what is the value of each?
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 possesses three intangible assets: contracts, goodwill, and trademarks. Each of these assets is valued at $30,000. These values were determined by the current management at the time the company was purchased, and they are believed to accurately represent the value of the intangible assets. Zoomin Groomin amortizes these assets over a fifteen-year period using the straight-line method.
For a prospective franchisee, understanding these intangible assets is crucial as they reflect the underlying value and brand recognition of Zoomin Groomin. The amortization of these assets, at $2,000 per asset per year, impacts the company's financial statements and could influence its overall financial health. The FDD states that the total amortization expense for the intangible assets during the next five years will be $6,000 per year.
It's important to note that these intangible assets are subject to annual impairment measurement, meaning their value could be adjusted if they are deemed to have declined in value. This could affect the overall financial performance of Zoomin Groomin and, by extension, the support and resources available to franchisees. A prospective franchisee should consider the stability and strength of these intangible assets as part of their due diligence.