What was the total amount of finance lease right-of-use assets 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 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the total amount of finance lease right-of-use assets in 2023 was $44,995. This figure represents the value of assets that Batteries Plus Bulbs has the right to use under finance lease agreements. These assets are reported on the company's balance sheet.
For a prospective franchisee, understanding the finance lease right-of-use assets is crucial because it reflects the company's financial obligations and asset base. Finance leases are typically long-term and involve the transfer of ownership or have terms that cover a major part of the asset's useful life. The presence of these assets indicates that Batteries Plus Bulbs relies on leased assets to conduct its operations.
It's important to note that these assets are subject to depreciation, as reflected in the accumulated depreciation figures provided in the document. The net value of these assets (original cost less accumulated depreciation) impacts the total asset value of the company. Franchisees should consider these figures when evaluating the financial health and stability of Batteries Plus Bulbs.
Reviewing the changes in finance lease right-of-use assets from year to year can also provide insights into the company's leasing strategy and capital investments. A significant increase or decrease in these assets may indicate changes in the company's operational scale or financial management practices.