How often does Zoomin Groomin measure its intangible assets for impairment?
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 measures its intangible assets for impairment on an annual basis. Zoomin Groomin's intangible assets consist of contracts, goodwill, and trademarks, each valued at $30,000. These assets were equally allocated by the current management to represent the intangible assets acquired when the company was purchased.
Zoomin Groomin amortizes these intangible assets over a fifteen-year period using the straight-line method. The annual amortization expense is $2,000 per asset, totaling $6,000 per year for all intangible assets. This amortization began with the year ending December 31, 2021. The assets are presented at net value on the balance sheet as Intangible Assets.
For a prospective franchisee, this means that Zoomin Groomin is actively monitoring the value of its intangible assets and accounting for their depreciation over time. This annual assessment for impairment ensures that the company's financial statements accurately reflect the value of these assets. Understanding how Zoomin Groomin manages and accounts for its intangible assets can provide franchisees with insights into the company's financial practices and stability.