What is the net lease liabilities, excluding the current portion, for an Alloy franchise?
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 lease liabilities, net of the current portion, is $595,429. This figure represents the long-term portion of the lease obligations that Alloy has, excluding the payments due within the next year.
For a prospective Alloy franchisee, understanding the lease liabilities is crucial because it reflects the financial obligations tied to the property lease. This liability is a significant part of the overall financial health of the franchise. Knowing the net lease liabilities helps in assessing the long-term solvency and profitability of the Alloy franchise.
Additionally, the document indicates that the average operating lease terms are between 8 and 9 years, with a weighted-average discount rate of 3.79%. These factors play a role in calculating the present value of the lease liabilities. Franchisees should consider these terms and discount rates when evaluating the financial implications of leasing a location for their Alloy franchise.