Goodwill and Intangible Assets
The Company had no goodwill impairment charges in 2025, 2024 or 2023. As of December 30, 2025 and December 31, 2024, the goodwill balance remained at $7.2 million.
The following table presents intangible assets subject to amortization as of December 30, 2025 and December 31, 2024, (in thousands):
| | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| Amortized intangible assets: | | | | |
| Reacquired franchise rights | | $ | 869 | | | $ | 933 | |
| Accumulated amortization | | (718) | | | (692) | |
| Amortized intangible assets, net | | 151 | | | 241 | |
| Non-amortized intangible assets: | | | | |
| Trademark rights | | 269 | | | 254 | |
| Intangibles, net | | $ | 420 | | | $ | 495 | |
The estimated aggregate future amortization expense as of December 30, 2025 is as follows, (in thousands):
| | | | | | | | |
| 2026 | | $ | 49 | |
| 2027 | | 40 | |
| 2028 | | 26 | |
| 2029 | | 12 | |
| 2030 | | 8 | |
| Thereafter | | 16 | |
| | $ | 151 | |
No impairment charges were recorded related to non-amortized intangible assets in 2025, 2024 or 2023.
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.