What was the net value of operating lease right-of-use assets for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating lease-related assets and liabilities recorded on the consolidated balance sheet are as follows: | 2024 | 2023 |
|---|---|---|
| Assets | ||
| ROU assets | $71,994 | $61,507 |
| Accumulated amortization | (14,233) | (9,460) |
| Operating lease ROU assets | $57,761 2024 | $52,047 2023 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the net value of operating lease right-of-use assets for the company in 2024 was $57,761. This figure represents the value of the company's right to use leased assets, such as real estate for store locations, after accounting for accumulated amortization. In 2023, the operating lease right-of-use assets, net, was $52,047.
Operating lease right-of-use (ROU) assets are an important component of a company's balance sheet, especially for businesses like Batteries Plus Bulbs that rely on leased locations for their franchise operations. The ROU asset reflects the value of the lease agreement, while the corresponding lease liability represents the obligation to make future lease payments. Amortization, in this context, is the systematic reduction of the asset's value over its useful life (i.e., the lease term).
For a prospective Batteries Plus Bulbs franchisee, understanding these figures is crucial because lease obligations often represent a significant financial commitment. The difference between the gross ROU assets ($71,994 in 2024) and the net value ($57,761) indicates the cumulative amortization. Reviewing these figures over time, as presented in the FDD, can provide insights into the company's leasing strategy and the financial impact of lease agreements. It's also important to note that these figures are part of the overall liabilities and member's equity, which totaled $427,382 in 2024.