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Franchise Rights Acquired, Goodwill and Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Change in Carrying Amount of Goodwill For the fiscal year ended December 31, 2022, the change in the carrying amount of goodwill was due to the Republic of Ireland franchisee and Northern Ireland franchisee acquisitions as described in Note 6, the impairments of the Republic of Ireland reporting unit and the Company's wholly-owned subsidiary Kurbo, Inc. (“Kurbo”) as discussed below and the effect of exchange rate changes as follows:

 

 

North

 

 

Continental

 

 

United

 

 

 

 

 

 

 

 

 

America

 

 

Europe

 

 

Kingdom

 

 

Other

 

 

Total

 

Balance as of January 2, 2021

 

$

145,071

 

 

$

7,792

 

 

$

1,268

 

 

$

1,486

 

 

$

155,617

 

Goodwill acquired during the period

 

 

2,153

 

 

 

 

 

 

 

 

 

 

 

 

2,153

 

Effect of exchange rate changes

 

 

306

 

 

 

(606

)

 

 

(14

)

 

 

(82

)

 

 

(396

)

Balance as of January 1, 2022

 

$

147,530

 

 

$

7,186

 

 

$

1,254

 

 

$

1,404

 

 

$

157,374

 

Goodwill acquired during the period

 

 

 

 

 

 

 

 

5,936

 

 

 

 

 

 

5,936

 

Goodwill impairment

 

 

(1,101

)

 

 

 

 

 

(2,023

)

 

 

 

 

 

(3,124

)

Effect of exchange rate changes

 

 

(2,862

)

 

 

(678

)

 

 

(561

)

 

 

(87

)

 

 

(4,188

)

Balance as of December 31, 2022

 

$

143,567

 

 

$

6,508

 

 

$

4,606

 

 

$

1,317

 

 

$

155,998

 

Schedule of Assumptions Utilized in Annual Impairment Analysis

The following are the more significant assumptions utilized in the Company's annual impairment analyses for fiscal 2022 and fiscal 2021:

 

 

Fiscal 2022

 

Fiscal 2021

Debt-Free Cumulative Annual Cash Flow Growth Rate

 

1.2% to 20.6%

 

0.2% to 2.6%

Discount Rate

 

9.6%

 

8.5%

Schedule of Carrying Values of Finite-lived Intangible Assets

The carrying values of finite-lived intangible assets as of December 31, 2022 and January 1, 2022 were as follows:

 

 

December 31, 2022

 

 

January 1, 2022

 

 

 

Gross

 

 

 

 

 

Gross

 

 

 

 

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Accumulated

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amortization

 

Capitalized software costs

 

$

107,229

 

 

$

94,375

 

 

$

115,065

 

 

$

94,771

 

Website development costs

 

 

133,818

 

 

 

91,482

 

 

 

110,678

 

 

 

78,629

 

Trademarks

 

 

12,162

 

 

 

11,882

 

 

 

12,116

 

 

 

11,677

 

Other

 

 

13,961

 

 

 

6,125

 

 

 

14,021

 

 

 

5,677

 

Trademarks and other intangible assets

 

$

267,170

 

 

$

203,864

 

 

$

251,880

 

 

$

190,754

 

Franchise rights acquired

 

 

8,164

 

 

 

5,101

 

 

 

7,905

 

 

 

4,766

 

Total finite-lived intangible assets

 

$

275,334

 

 

$

208,965

 

 

$

259,785

 

 

$

195,520

 

Schedule of Estimated Amortization Expense of Finite-lived Intangible Assets

Estimated amortization expense of existing finite-lived intangible assets for the next five fiscal years and thereafter was as follows:

Fiscal 2023

 

$

29,816

 

Fiscal 2024

 

$

19,599

 

Fiscal 2025

 

$

8,189

 

Fiscal 2026

 

$

871

 

Fiscal 2027

 

$

723

 

Thereafter

 

$

7,171