What is the present value of lease liabilities for Alloy, according to the table?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
| Year ending December 31: | Amount |
|---|---|
| 2025 | $ 90,725 |
| 2026 | 90,725 |
| 2027 | 94,354 |
| 2028 | 94,354 |
| 2029 | 97,983 |
| Thereafter | 301,207 |
| Net minimum lease payments | 769,348 |
| Less: interest | (106,859) |
| Present value of lease liabilities | 662,489 |
| Less: current portion | (67,060) |
| Lease liabilities, net of current portion | $ 595,429 |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the present value of lease liabilities is $662,489. This figure represents the discounted value of future lease payments, reflecting the current financial obligation Alloy has for its leases. This is calculated for the year ending December 31.
To arrive at this present value, Alloy calculates the net minimum lease payments, which total $769,348. From this total, they subtract interest amounting to $106,859. The resulting figure of $662,489 represents the present value of the lease liabilities.
For a prospective Alloy franchisee, understanding these lease liabilities is crucial. It provides insight into the financial obligations Alloy has undertaken, which can be indicative of the types of lease terms a franchisee might encounter when securing a location for their own Alloy Personal Training facility. Reviewing these figures can help a potential franchisee better prepare for their own financial planning and negotiations with landlords.