Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.23.1
Intangible Assets
 12 Months Ended
Jan. 02, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
The following is a summary of the components of intangible assets and the related amortization expense:

January 2, 2023
December 31, 2021
(in thousands) Amount Accumulated Amortization Net Carrying Value Amount Accumulated Amortization Net Carrying Value
Franchise agreements $ 24,839  $ 7,245  $ 17,594  $ 24,839  $ 3,696  $ 21,143 
Trade names / trademarks 143,726  8,010  135,716  143,750  3,220  140,530 
Liquor license 6,678  —  6,678  6,678  —  6,678 
License agreement 1,176  1,063  113  1,176  925  251 
VegeFi product 135  28  107  135  14  121 
$ 176,554  $ 16,346  $ 160,208  $ 176,578  $ 7,855  $ 168,723 

Liquor license is considered to have an indefinite life, and in addition to the Company's definite-lived intangible assets, is reviewed for impairment at the end of each reporting period and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The Company recorded a $7.7 million impairment charge for the year ended December 31, 2021, in relation to the Company's license agreement. No impairment charge was recorded for the year ended January 2, 2023 related to this license agreement. See Note 5 “Impairment,” for further information.

Amortization expense for the years ended January 2, 2023 and December 31, 2021 was $8.5 million and $7.6 million, respectively. The estimated aggregate amortization expense for intangible assets over the next five years ending January 2 and thereafter is as follows:

(in thousands)
2023 $ 8,467 
2024 8,353 
2025 8,353 
2026 8,353 
2027 8,204 
Thereafter 111,800 
Total $ 153,530