What was the total amount of Batteries Plus Bulbs' operating lease ROU assets in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
k-free treasury rate at commencement or modification date in determining the present value of lease payments over the lease term. For operating leases that commenced prior to the date of adoption of the new standard, the Company used the treasury rate that best corresponded to the remaining lease term as of the date of adoptio
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the company's operating lease ROU assets totaled $49,306 in 2022. This figure represents the value of the company's right to use leased assets for their lease terms, as reported on their consolidated balance sheets.
Right-of-use (ROU) assets are recognized under accounting standards for leases, reflecting the value of the company's right to use an asset for the duration of the lease. This asset is directly related to the corresponding lease liability, which represents the obligation to make lease payments. Both the ROU asset and the lease liability are reduced over the lease term, reflecting amortization and payments, respectively.
For a prospective Batteries Plus Bulbs franchisee, understanding these figures is crucial as it provides insight into the company's leasing obligations and asset utilization. While this information reflects the overall financial health of the franchisor, it does not directly indicate the lease obligations a new franchisee might incur for their individual store location. Franchisees should carefully review their own lease agreements and consult with financial advisors to understand their specific financial responsibilities.