How much sublease rental income did Beef O Bradys recognize during 2024?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
-------|------------------|-----------------| | Operating lease assets: | $ 12,016,662 | $ 13,879,728 | | Right-of-use assets | | | | 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 |
Operating lease expense, net of sublease income, for the years ended December 31,2024 and 2023 was $3,116,663 and $2,925,363 respectively
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 in sublease rental income during 2024. This income is related to a portion of office space that Beef O Bradys subleased, starting in 2023, for an eighty-eight-month term.
For a prospective franchisee, this indicates that Beef O Bradys engages in subleasing activities, which can impact their overall operating lease expenses. The sublease rental income helps to offset the company's operating lease expense, which was $3,116,663 for the year ended December 31, 2024, net of sublease income.
It's important to note that while this sublease income benefits Beef O Bradys, it is not directly related to the franchise operations of individual Beef O Bradys restaurants. Instead, it reflects the company's management of its own office space and lease agreements. Franchisees should focus more on the revenue and expenses associated with running their specific restaurant locations.