What was the amount of Beef O Bradys' non-current lease liabilities as of December 31, 2024?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Operating lease assets: | ||
| Right-of-use assets | $ 12,016,662 | |
| Operating lease liabilities: | ||
| Current lease liabilities | $ 2,495,480 | $ 2,692,882 |
| Non-current lease liabilities | 9,899,941 | 11,740,118 |
| Total operating lease liabilities | $ 12,395,421 | $ 14,433,000 |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the non-current lease liabilities as of December 31, 2024, were $9,899,941. This represents the portion of the company's total lease obligations that are not due within the next 12 months. Lease liabilities are a result of operating leases for properties or equipment used in the business.
For a prospective franchisee, understanding the lease liabilities of Beef O Bradys is crucial because it provides insight into the company's long-term financial obligations related to its leased assets. These liabilities reflect the present value of future lease payments, discounted to reflect the time value of money. Monitoring these figures helps assess the financial stability and long-term commitments of the company.
The FDD also provides the non-current lease liabilities for the previous year, 2023, which was $11,740,118. Comparing these figures year-over-year can indicate whether Beef O Bradys is increasing or decreasing its long-term lease obligations, which could reflect expansion, contraction, or renegotiation of lease terms. A decrease in non-current lease liabilities could be a positive sign, suggesting improved financial management or more favorable lease agreements.
It is important for potential franchisees to review these figures in the context of the company's overall financial health and growth strategy. While lease liabilities are a normal part of business operations for many companies, significant or rapidly changing liabilities can warrant further investigation to ensure the company's financial stability and ability to support its franchisees.