How much sublease rental income did Beef O Bradys recognize during 2023?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating lease assets: Right-of-use assets | $ | 13,879,728 | $ 14,639,301 |
|---|---|---|---|
| Operating lease assets: | |||
| Current lease liabilities | $ | 2,692,882 | $ 2,561,004 |
| Non-current lease liabilities | 11,740,119 | 12,608,582 | |
| Total operating |
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 recognized $90,528 of sublease rental income during 2023. This income was generated from subleasing a portion of their office space, which began in 2022 and is structured as an eighty-eight month term. In 2022, Beef O Bradys recognized $37,342 in sublease rental income.
For a prospective franchisee, this indicates that Beef O Bradys engages in subleasing activities as part of its business operations. While this sublease income does not directly impact the operations of a franchised Beef O Bradys restaurant, it provides insight into the company's financial management and revenue diversification strategies at the corporate level.
The document also mentions that operating lease expense, net of sublease income, was $2,925,363 for the year ended December 31, 2023, and $2,696,582 for the year ended December 31, 2022. This suggests that while Beef O Bradys receives income from subleasing, their overall lease expenses are significantly higher. This is a common practice for many businesses that lease office or operational space and seek to offset costs by subleasing unused portions.