What amount of cash was paid for amounts included in measuring operating lease liabilities for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Less: current portion | (67,060) | |
|---|---|---|
| Lease liabilities, net of current portion | $595,429 | |
| Cash paid for amounts included in measuring operating | ||
| --- | --- | --- |
| lease liabilities: | ||
| Operating cash flows from operating leases | $87,096 | $87,096 |
| Average operating lease terms and discount rates were | ||
| --- | --- | --- |
| as follows: | ||
| Weighted-average remaining lease term (in years) | 8 | 9 |
| Weighted-average discount rate (%) | 3.79 | 3.79 |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the cash paid for amounts included in measuring operating lease liabilities is detailed in Item 23, Receipts. Specifically, the operating cash flows from operating leases amounted to $87,096. This figure represents the actual cash outflow related to Alloy's lease obligations during the reporting period.
For a prospective Alloy franchisee, understanding this figure is crucial for assessing the company's financial health and its approach to lease management. The $87,096 indicates the cash Alloy used to cover its operating lease liabilities. This information, combined with the lease liabilities net of the current portion, which is $595,429, provides a more complete picture of Alloy's overall lease obligations and how they are being managed.
Additionally, the document notes the weighted-average remaining lease term is 8 to 9 years, with a weighted-average discount rate of 3.79%. These metrics are important for understanding the long-term financial commitments Alloy has undertaken with respect to its leases. Franchisees should consider these factors when evaluating the financial stability and future prospects of the Alloy franchise system.