What is the net amount of lease liabilities, after deducting the current portion, for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
_________________ | Title: _____________________________ | | | | | | | Date: _____________________________ | | Date: _____________________________ | Depreciation and amortization expense amounted to $14,055 and $4,541 for the years ended December 31, 2024 and 2023, respectively.
NOTE 7. COMMITMENTS AND CONTINGENCIES
Operating lease
During 2023, the Company entered into a lease agreement for an office space expiring on December
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the net amount of lease liabilities, after deducting the current portion, is $595,429. This figure represents the present value of Alloy's future lease obligations, less the portion of those obligations due within the next year. The current portion, which has already been subtracted, is $67,060. The total present value of lease liabilities before deducting the current portion is $662,489.
These lease liabilities stem from Alloy's operating lease, which was entered into during 2023 for an office space with an expiration date of December 31, 2032. The operating lease expense, inclusive of common area maintenance, taxes, and insurance, amounted to $114,313 for both 2024 and 2023. The net minimum lease payments total $769,348, with an interest component of $106,859 deducted to arrive at the present value of lease liabilities.
For a prospective Alloy franchisee, understanding these lease liabilities is crucial, as it provides insight into the company's long-term financial obligations related to its office space. The weighted-average remaining lease term is 8 to 9 years, with a weighted-average discount rate of 3.79%. This information helps franchisees assess the stability and financial health of Alloy, as well as the potential impact of lease obligations on the company's overall financial performance.