What is 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. This figure represents the cash amount Alloy paid for amounts included in measuring operating lease liabilities.
For a prospective franchisee, understanding the operating cash flows from operating leases is crucial for assessing the financial health and stability of Alloy. It provides insight into how Alloy manages its lease obligations and the impact of these obligations on its overall cash flow. This information can be used to evaluate the company's ability to meet its financial obligations and invest in future growth.
Additionally, the FDD notes the weighted-average remaining lease term is 8 to 9 years, with a weighted-average discount rate of 3.79%. These figures provide further context for understanding the nature and terms of Alloy's operating leases. A franchisee can use this information to compare Alloy's lease terms and discount rates to industry benchmarks and assess the potential risks and opportunities associated with leasing.