What is the current portion of the lease liability for Anago?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| Less: Current | portion oflease | liability | (271,497) |
|---|---|---|---|
| Lease | liablity less current | portion | $440,601 |
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the current portion of the lease liability is $271,497. The total lease liability less the current portion is $440,601. This information is based on data as of December 31, 2024.
This indicates that Anago has a lease obligation, and a portion of it is due within the next year (the current portion), while the remaining amount is due in subsequent years. The lease agreement was established in May 2018 with monthly payments of $19,384, maturing in April 2028. The lease is for office space, and the company accounts for it by capitalizing the operating lease, resulting in a 'right to use asset' and a corresponding 'lease liability' on the balance sheets.
The valuation of the right to use asset and lease liability is recorded at the present value using a risk-free interest rate of 2.97%. This accounting treatment is in accordance with FASB ASC 842, which requires companies to recognize lease assets and liabilities on the balance sheet for leases with terms longer than 12 months. For a prospective franchisee, this information provides insight into Anago's financial obligations and how they account for leases, which can be useful for assessing the company's financial health and stability.