What was the amount of noncash operating lease expense for Bath Tune Up in 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
4,223,532 | | Balance at December 31, 2022 | $ 9,523,034 | $ (6,119,658) | $ 3,403,376 |
The accompanying notes are an integral part of the financial statements.
Statement of Cash Flows
| For the year ended December 31, | 2022 |
|---|---|
| Cash flows from operating activiti |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the noncash operating lease expense for the year ending December 31, 2022, was $22,041. This figure represents the portion of lease expenses that did not involve a direct cash outlay during that period but is still recognized as an expense on the company's financial statements.
Noncash operating lease expenses typically arise from accounting adjustments related to lease agreements, such as the amortization of right-of-use assets or changes in lease liabilities. These adjustments reflect the economic reality of using leased assets without an equivalent cash transaction in the same period. For Bath Tune Up, this expense is part of the broader adjustments made to reconcile net earnings to net cash provided by operating activities.
Prospective franchisees should understand that noncash expenses like this impact the company's overall financial picture and can affect profitability metrics. While it doesn't represent an immediate cash outflow, it does reflect the cost of utilizing leased assets and is an important factor in assessing the company's financial health. Reviewing these figures in the context of the full financial statements, along with the auditor's report, provides a more complete understanding of Bath Tune Up's financial performance.