What was the total amount of sublease rental income recognized by Beef O Bradys during 2022?
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 $37,342 of sublease rental income during 2022. 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.
For a prospective franchisee, this indicates that Beef O Bradys engages in subleasing activities to generate additional income. While this detail might seem distant from the core franchise operations, it provides insight into the company's financial strategies and how they manage their assets. Understanding these strategies can help a franchisee assess the overall financial health and resourcefulness of the franchisor.
It's important to note that the sublease rental income is a relatively small amount compared to the overall operating lease expense, which was $2,696,582 in 2022, net of sublease income. This suggests that while the subleasing activity contributes to offsetting expenses, it is not a primary revenue stream for Beef O Bradys. Franchisees should focus more on the primary revenue streams, such as franchise fees, royalties, and sales from company-owned stores, when evaluating the financial performance of the company.