What were the right of use assets - operating leases for Annex Brands in 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,219,000 | $ 11,992,000 |
| Accounts receivable, net of allowance for doubtful | ||
| accounts of $910,000 and $948,000, respectively | 1,377,000 | 1,642,000 |
| Prepaid expenses and other current assets | 1,220,000 | 704,000 |
| Total current assets | 14,816,000 | 14,338,000 |
| Property and equipment, net | 1,006,000 | 812,000 |
| Right of use assets - operating leases | 1,403,000 | - |
| Deposits and other noncurrent assets | 1,086,000 | 1,122,000 |
| Intangible assets, net | 223,000 | 278,000 |
| Total assets | $ 18,534,000 | $ 16,550,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the company's right of use assets - operating leases totaled $1,403,000 in 2024. This figure represents the value of Annex Brands' right to use assets under operating leases, as reported on their consolidated balance sheet. In 2023, Annex Brands did not report any right of use assets - operating leases.
The recognition of these assets and related lease liabilities on the balance sheet is a result of accounting standards requiring companies to recognize the rights and obligations created by leases. This provides a more transparent view of Annex Brands' financial obligations related to leased properties, primarily office spaces. The increase from 2023 to 2024 indicates that Annex Brands entered into new or extended lease agreements during 2024.
For a prospective franchisee, understanding these figures is important as it reflects Annex Brands' financial commitments and how they manage their own lease obligations. While this doesn't directly impact a franchisee's operations, it offers insight into the financial management and stability of the franchisor. Franchisees typically have their own lease obligations for their individual locations, separate from Annex Brands' corporate leases.