What was the amount of Beef O Bradys' non-current lease liabilities as of December 31, 2023?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
0,640 | | Goodwill recognized through store acquisitions | 1,096,872 | | Amortization | (3,282,950) | | Balance, December 31, 2024 | $ 10,544,562 |
Note 8. Leases
The following table presents the consolidated balance sheet location of assets and liabilities related to operating leases as of December 31, 2024 and 2023:
| | 2024 | 2023 | |----------------------------------------
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the company's non-current lease liabilities as of December 31, 2023, totaled $11,740,118. This figure represents the portion of the company's lease obligations that are not due within the upcoming year. Lease liabilities typically arise from agreements to lease property or equipment used in the operation of Beef O Bradys restaurants.
For a prospective Beef O Bradys franchisee, understanding the lease liabilities of the franchisor can provide insight into the company's financial obligations and overall financial health. While this specific figure reflects the franchisor's obligations, franchisees will also incur their own lease obligations for their restaurant locations. These obligations can vary significantly depending on the location, size, and terms of the lease agreement.
It is important for potential franchisees to carefully consider their own lease obligations and how they will impact their profitability. Factors such as rent, lease term, and renewal options should be thoroughly evaluated. Additionally, franchisees should understand how changes in interest rates or other economic conditions could affect their lease payments. Reviewing the franchisor's lease liabilities can offer a broader context for assessing the financial aspects of operating a Beef O Bradys franchise.