What was the current portion of the finance lease liability for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 | |
| Total current assets | 102,061 | 106,235 | |
| Property and equipment | |||
| Furniture, fixtures and equipment | 15,913 | 14,383 | |
| Vehicles | 1,841 | 1,740 | |
| Leasehold improvements | 5,118 | 4,739 | |
| Software | 26,733 | 23,913 | |
| Finance lease right-of-use assets | 502 50,107 | 220 44,995 | |
| Accumulated depreciation | (29,978) | (24,213) | |
| Construction in process | 1,196 | 346 | |
| Total property and equipment | 21,325 | 21,128 | |
| Other assets | |||
| Goodwill, net | 35,709 | 25,051 | |
| Other intangible assets, net | 210,372 | 225,292 | |
| Operating lease right-of-use assets, net | 57,761 | 52,047 | |
| Notes receivable | 154 | 184 | |
| Total other assets | 303,996 | 302,574 | |
| LIABILITIES AND MEMBER’S EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ 40,401 | $ 33,297 | |
| Accrued salaries and benefits | 4,928 | 3,618 | |
| Current portion of note payable - store repurchase | 4,050 | - | |
| Accrued warranty | 3,123 | 3,032 | |
| Other accrued expenses | 2,848 | 3,379 | |
| Due to franchisees | 395 | 380 | |
| Current portion of operating lease liabilities | 6,359 | 5,582 | |
| Current portion of finance lease liability | 99 | 44 | |
| Current portion of contract liability | 512 | 1,073 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs' current portion of the finance lease liability in 2023 was $44. This represents the amount of the company's finance lease obligations due within the next year.
Finance leases typically involve longer-term assets like equipment or vehicles, where the lease is essentially a way for the company to finance the asset over its useful life. The current portion reflects the payments due within the next 12 months, while the non-current portion covers payments due beyond that timeframe.
For a prospective franchisee, understanding the finance lease liability is crucial because it represents a fixed financial obligation. It is important to consider this liability when assessing the overall financial health and cash flow of Batteries Plus Bulbs. Reviewing the complete lease agreements would provide further details on the terms, interest rates, and any associated covenants or restrictions.