When does Anago create a lease liability for the present value of future minimum lease payments?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
and 2022 Anago Franchising, Inc. has 7,500 shares of no par value common stock authorized issued and outstanding.
As of December 31, 2024, 2023, and 2022 APLR, Inc. has 100 shares of no par value common stock authorized with 100 shares issued and outstanding.
As of December 31, 2024, 2023, and 2022 Anago Direct Marking, Inc., PBTR, Inc. and CCTD, Inc. have 100 shares of no par value common stock authorized with 100 shares issued and outstanding.
As of December 31, 2023 EHLB, Inc. dba Anago of Las Vegas has 100 shares of no par value common sto
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago accounts for leases in accordance with FASB ASC 842. When Anago enters into an operating lease, it capitalizes the lease, resulting in a "right to use asset" and a corresponding "lease liability" on its balance sheets. The valuation of the right to use asset and the corresponding lease liability is recorded at the present value using a risk-free interest rate of 2.97%.
In May 2018, Anago entered into an operating lease agreement for office space requiring monthly lease payments of $19,384, maturing in April 2028. This lease agreement is the specific instance cited in the FDD where the company has applied the accounting standard and created a lease liability.
For a prospective franchisee, this information is relevant in understanding how Anago manages its own lease obligations. While this specific lease does not directly impact franchisees, it provides insight into Anago's financial practices and how they account for long-term liabilities. It also shows that Anago uses a risk-free interest rate to determine the present value of its lease obligations.