What was the value of Alloy's operating lease liability and right-of-use assets recognized on January 1, 2023?
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 current portion, was $595,429. The cash paid for amounts included in measuring operating lease liabilities was $87,096. The weighted-average remaining lease term was 9 years and the weighted-average discount rate was 3.79% in 2023.
For a prospective Alloy franchisee, understanding these figures is crucial for assessing the financial obligations associated with leasing a facility. The lease liability represents the present value of future lease payments, while the cash paid reflects the actual outflow of funds for operating leases during the specified period. The remaining lease term and discount rate provide insights into the duration and cost of these lease obligations.
It's important to note that these figures provide a snapshot of Alloy's leasing situation as of December 31, 2023. Individual franchisees will need to conduct their own due diligence to determine the specific lease terms and costs associated with their chosen location. Factors such as location, size, and lease terms can significantly impact the financial viability of an Alloy franchise.