What was the long-term 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 | |
|---|---|---|
| Liabilities and Member's Equity | ||
| 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 | ||
| Total Liabilities 1,626,912 1,528,666 | ||
| Commitments and Contingencies (Note 6) | ||
| Member's equity |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the company's long-term operating lease liability as of December 31, 2024, was $117,183. This figure represents the portion of the operating lease obligations that Bath Tune Up is expected to pay beyond the next 12 months. In comparison, the long-term operating lease liability as of December 31, 2023, was $172,276.
For a prospective Bath Tune Up franchisee, understanding the franchisor's lease obligations can provide insight into the company's financial commitments and stability. Operating leases typically cover the use of property or equipment, and the liability reflects the present value of future lease payments. A decrease in long-term operating lease liability from 2023 to 2024 could indicate that Bath Tune Up has either paid down a portion of its lease obligations or renegotiated lease terms.
It's important for potential franchisees to consider these liabilities in the context of Bath Tune Up's overall financial health. While operating leases are a common business practice, significant lease obligations can impact a company's cash flow and profitability. Reviewing the complete financial statements and seeking professional financial advice is recommended to fully assess the implications of these liabilities.