How does the weighted average discount rate of 3.63% impact Beard Papas' lease obligations?

I am unable to provide information about the weighted average discount rate of 3.63% and its impact on Beard Papas' lease obligations, as this information is not present in the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do discuss lease agreements, indicating that for the years ended December 31, 2023 and 2022, the company incurred rent expenses under noncancelable lease agreements of approximately $168,000 and $70,000, respectively. The FDD also outlines the franchisee's responsibilities in site selection, requiring franchisor approval of the location and lease terms. Additionally, the franchisor has the option to assume or renew the lease under certain conditions, such as termination or default, without increased costs or fees.

However, the FDD excerpts do not provide details on how a specific discount rate would affect these lease obligations. The document does not elaborate on the financial calculations or factors used to determine lease terms or rental expenses. The excerpts focus more on the procedural and approval aspects of site selection and lease agreements, as well as the franchisor's rights and options regarding the lease.

To fully understand the impact of a 3.63% weighted average discount rate on Beard Papas' lease obligations, a prospective franchisee should ask the franchisor for detailed financial information and explanations. Specifically, they should inquire about the methods used to calculate lease obligations, the factors that influence these calculations, and how discount rates are applied in practice. Understanding these financial aspects is crucial for making an informed investment decision.