What is the present value of lease liabilities for Aunt Millies Bakeries related parties?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| R | elated Parties | 9 | Third Parties | Total | ||
|---|---|---|---|---|---|---|
| Total future lease payments | 10,960,127 | 11,209,672 | 22,169,799 | |||
| Less: imputed interest | (1,920,612) | _ | (779,409) | _ | (2,700,021) | |
| Present value of lease liabilities | 9,039,515 | 10,430,263 | 19,469,778 | |||
| Less: Lease liabilities, current | - | (1,417,438) | _ | (3,274,251) | )() | (4,691,689) |
| Lease liabilities, non-current | $ | 7,622,077 | $ | 7,156,012 | $ | 14,778,089 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the present value of lease liabilities to related parties is detailed in Item 23. The table provided shows a breakdown of future lease payments, imputed interest, and the present value of lease liabilities, distinguishing between related parties and third parties. As of the information provided, the present value of lease liabilities for related parties is $9,039,515.
This figure represents the discounted value of future lease payments owed to related parties, taking into account imputed interest of $1,920,612. The total future lease payments to related parties amount to $10,960,127. It's important to note that a portion of these lease liabilities is classified as current, amounting to $1,417,438, while the non-current portion is $7,622,077.
For a prospective Aunt Millies Bakeries franchisee, understanding these lease liabilities is crucial. Related-party leases can sometimes involve different terms or considerations than leases with independent third parties. Franchisees should inquire about the nature of these related-party leases, the specific terms involved, and how they might impact the franchisee's financial obligations and operational flexibility. Understanding the details of these leases is essential for assessing the overall financial health and stability of the franchise system.