Through what year does Bath Tune Up currently have lease agreements?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company currently has lease agreements through 2027.
| Years Ending December 31, | Operating Leases | |
|---|---|---|
| 2025 | $ 58,698 | |
| 2026 | 65,295 | |
| 2027 | 55,316 | |
| Total lease payments | 179,309 | |
| Less: amount representing interest | (7,033) | |
| Present value of lease liabilities | $ 172,276 |
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 company currently has lease agreements that extend through 2027. These agreements pertain to an office and storage building located in Aberdeen, South Dakota.
The financial statement notes also provide a breakdown of the operating lease payments for the years 2025, 2026 and 2027. The operating lease payments are $58,698 for 2025, $65,295 for 2026, and $55,316 for 2027. The total lease payments amount to $179,309, with an amount representing interest of $7,033 deducted to arrive at a present value of lease liabilities of $172,276.
These leases are noncancellable operating lease agreements. The initial terms of these leases are for five years, and some include free rent periods, periodic rent increases, and renewal options. The monthly payments for these leases range from $700 to $4,774. Bath Tune Up is generally required to cover maintenance, repairs, property taxes, and insurance costs associated with these leases, which are variable amounts based on actual costs incurred.