What was the amount of operating cash flows from operating leases for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 operating cash flows from operating leases is $87,096. The document also mentions that the average operating lease terms were 8 to 9 years, with a weighted-average discount rate of 3.79%.
This figure represents the cash outflow related to Alloy's operating leases during the specified period. Operating leases are for assets that Alloy uses but does not own, such as real estate for its corporate offices. The $87,096 represents the actual cash Alloy paid out for these leases.
For a prospective franchisee, this information provides insight into Alloy's financial obligations and how it manages its lease agreements. Understanding the lease terms and discount rates can help potential franchisees assess the company's financial health and stability. It's also useful to note that this figure reflects Alloy's corporate-level expenses and not the expenses a franchisee would incur for their own location's lease.