What was the current operating lease liability for Bath Tune Up as of December 31, 2024?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Current liabilities | ||
| Accounts payable $ 318,262 $ 5,557 | ||
| Accrued liabilities 476,363 514,466 | ||
| Operating lease liability, current 55,093 57,206 | ||
| Advertising advances and deposits 9,926 156,605 | ||
| Deferred revenue 650,085 622,556 | ||
| Total Current liabilities 1,509,729 1,356,390 | ||
| Operating lease liability, long-term 117,183 172,276 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the current operating lease liability as of December 31, 2024, was $55,093. This figure represents the portion of Bath Tune Up's lease obligations due within the next 12 months. Lease liabilities typically arise from agreements to rent property or equipment used in the operation of the business.
For a prospective Bath Tune Up franchisee, understanding the operating lease liability is crucial because it reflects a financial obligation that must be satisfied. This liability, along with other current liabilities, impacts the overall financial health and liquidity of the company. Monitoring this figure over time, as well as comparing it to the long-term operating lease liability ($117,183 as of December 31, 2024), can provide insights into the company's long-term financial commitments and how they are structured.
It's important to note that operating lease liabilities are a common component of a company's balance sheet, especially for businesses that lease their premises or equipment rather than owning them outright. Franchisees should consider these liabilities when assessing the financial stability of Bath Tune Up and its ability to support its franchisees. Reviewing the trend of these liabilities from year to year can also offer a glimpse into the company's growth and expansion strategies.