What was the weighted-average discount rate (%) for Alloy?
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 weighted-average discount rate is 3.79%. This figure is relevant in the context of lease liabilities. The document also indicates the weighted-average remaining lease term is 8 to 9 years.
For a prospective Alloy franchisee, the discount rate is a factor in determining the present value of future lease payments. A higher discount rate would result in a lower present value of lease liabilities, while a lower discount rate would result in a higher present value. Understanding the lease terms and discount rates is crucial for assessing the financial obligations associated with leasing a facility for the Alloy franchise.
The consistency of the discount rate at 3.79% suggests a stable financial environment for leasing, at least as it pertains to the information available in this section of the FDD. Franchisees should consult with financial advisors to fully understand the implications of lease liabilities and discount rates on their investment.