When does the Apricot Lane operating lease agreement terminate?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year ended December 31, | Total |
|---|---|
| 2024 | $ 44,200 |
| 2025 | 46,091 |
| 2026 | 48,086 |
| 2027 | 48,873 |
| 2028 | 36,433 |
| Thereafter | 466,005 |
| Total | $ 689,688 |
NOTE 8 - LEASE OBLIGATION
The Company leases office space under an operating lease agreement. Rent expense of $31,375 and $32,033 was charged to operating expense for the years ended December 31, 2023 and 2022 respectively. The operating lease began on July 24, 2022 and terminates on May 31, 2024. The terms of the lease agreement include a monthly base rent expense of $1,771 for the year ended December 31, 2023. In accordance with ASC 842 as discussed in Note 1, a right-of-use lease asset and lease liability have been recorded in the amount
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company leases office space under an operating lease agreement. This lease began on July 24, 2022, and terminates on May 31, 2024.
The FDD also states that the terms of the lease agreement include a monthly base rent expense of $1,771 for the year ended December 31, 2023. For the years ended December 31, 2023 and 2022, the rent expense charged to operating expense was $31,375 and $32,033 respectively.
Additionally, a right-of-use lease asset and lease liability have been recorded in the amount of $18,971, based on a discount rate of 6%, in accordance with ASC 842. Future minimum rental payments are also specified in the document.