Acquisitions

9 Months Ended

Sep. 30, 2020

New Jersey Acquisition

On December 16, 2019, the Company purchased from one of its franchisees certain assets associated with twelve franchisee-owned stores in New Jersey for a cash payment of $37,812. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $1,810. The loss incurred reduced the net purchase price to $36,002. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.

The purchase consideration was allocated as follows:


	Amount
Fixed assets	$	3,044
Reacquired franchise rights	9,480
Customer relationships	940
Favorable leases, net	1,508
Reacquired area development rights	90
Other assets	314
Goodwill	21,069
Liabilities assumed, including deferred revenues	(443)
	$	36,002

The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.

The acquisition was not material to the results of operations of the Company.

Maine Acquisition

On May 30, 2019, the Company purchased from one of its franchisees certain assets associated with four franchisee-owned stores in Maine for a cash payment of $14,801. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.

The purchase consideration was allocated as follows:


	Amount
Fixed assets	$	999
Reacquired franchise rights	6,740
Customer relationships	30
Unfavorable leases, net	(140)
Other assets	78
Goodwill	7,239
Liabilities assumed, including deferred revenues	(145)
	$	14,801

The acquisition was not material to the results of operations of the Company.