For Atwell Suites, what were the cash outflows for operating leases in 2023?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | $ 21,120 |
|---|---|
| 2026 | 21,120 |
| 2027 | 21,120 |
| 2028 | 21,120 |
| 2029 | 21,120 |
| Thereafter | 3,085,728 |
| Net minimum lease payments | 3,191,328 |
| Less amount representing interest | (2,930,124) |
| Present value of net minimum l |
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the cash outflows for operating leases in 2023 were $14,968. This figure represents the actual cash payments made by Atwell Suites related to their operating leases during that year. Operating leases typically involve renting property or equipment, where Atwell Suites does not assume ownership of the underlying asset.
It is important to note that this number reflects Atwell Suites's overall cash outflows and not necessarily the expenses that a franchisee might incur for their specific location. A franchisee's operating lease expenses will depend on factors such as the property rental costs and any equipment leases they enter into. These costs can vary significantly based on location, size, and specific terms of the lease agreement.
Prospective franchisees should carefully consider their potential operating lease obligations and factor these costs into their financial projections. It would be prudent to discuss typical lease terms and costs with existing Atwell Suites franchisees to gain a better understanding of what to expect. Additionally, a detailed review of the real estate market in their target location is essential to accurately estimate these expenses.