What was the total value of finance lease right-of-use assets for Batteries Plus Bulbs in 2024?
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 | |
| Total current liabilities | 62,715 | 50,405 | |
| Non-current liabilities | |||
| Finance lease liability, less current portion | 275 | 131 | |
| Contract termination | 188 | 172 | |
| Note payable - store repurchase | 400 | - | |
| Contract liability, less current portion | 8,223 | 7,319 | |
| Operating lease liabilities, less current portion | 53,596 | 48,345 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the total value of finance lease right-of-use assets in 2024 was $50,107. This figure represents the company's rights to use leased assets under finance lease agreements. These assets are reported on the balance sheet and reflect the economic benefits Batteries Plus Bulbs expects to receive from using the leased assets over the lease term. The corresponding accumulated depreciation for these assets was $29,978.
For a prospective franchisee, understanding the finance lease right-of-use assets is crucial because it reflects the company's strategy in acquiring and utilizing assets. Finance leases typically transfer ownership of the asset to the lessee by the end of the lease term, or the lease contains a bargain purchase option. This approach can impact the franchisee's financial obligations and asset management responsibilities. The difference between the gross asset value and accumulated depreciation provides insight into the net value of these assets and their remaining useful life.
It's important to note that these figures are part of the overall financial health assessment of Batteries Plus Bulbs. Franchisees should consider these assets in conjunction with the corresponding finance lease liabilities, which include both current and non-current portions. The current portion of the finance lease liability was $99, while the non-current portion was $275. This breakdown helps in understanding the short-term and long-term obligations associated with these leases.
Analyzing these figures in comparison to previous years, such as 2023 where the finance lease right-of-use assets were $44,995, can reveal trends in the company's leasing activities and asset management strategies. Prospective franchisees should discuss these trends with Batteries Plus Bulbs to fully understand the implications for their own franchise operations and financial planning.