What was the value of the right-of-use lease asset for Apricot Lane in 2024?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
LLP Grass Valley, CA February 10, 2025
Sointo Group
2
| ASSETS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Current Assets: | 4. | 107 (10 | |||
| Cash and cash equivalents | S | 85,129 | $ | 186,678 | |
| Marketable securities | 113,379 | 161,923 | |||
| Franchise fees receivable | 222,000 | 207,000 | |||
| Franchise royalties and advertising receivable | |||||
| less allowance for doubtful accounts | 72,069 | 95,760 | |||
| Reimbursable franchise costs and other receivab | les | ||||
| less allowance for doubtful accounts | 18,076 | 24,017 | |||
| Prepaid expenses | 20,201 | 22,346 | |||
| Current portion of notes receivable | _ | - | |||
| Total Current Assets | 530,854 | 697,724 | |||
| Furniture, equipment, and vehicles net | 156,003 | 200,976 | |||
| Other Non-current Assets: | |||||
| Security deposit | 2,500 | 2,603 | |||
| Right-of-use lease asset | - | 8,724 | |||
| Notes Receivable, less current portion | 9 |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the value of the right-of-use lease asset in 2024 was listed as zero. This figure is part of the company's balance sheet detailing assets, liabilities, and equity.
The right-of-use lease asset represents Apricot Lane's right to use leased assets over the lease term. This asset is calculated based on the present value of future lease payments, adjusted for any deferred rent liability and lease incentives. The corresponding lease liability represents the company's obligation to make lease payments, measured at the present value of future lease payments over the lease term, using a risk-free rate.
The decrease in the right-of-use lease asset from $8,724 in 2023 to zero in 2024 could indicate that Apricot Lane either paid off the lease liability, renegotiated the lease terms, or the lease agreement concluded during 2024. A prospective franchisee should investigate the reasons behind this change to understand Apricot Lane's financial strategies and potential future lease obligations.