What were the total operating lease liabilities for Beef O Bradys in 2023?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Operating lease assets: | ||
| Right-of-use assets | $ 12,016,662 | $ 13,879,728 |
| 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 company's total operating lease liabilities were evaluated. As of December 31, 2023, Beef O Bradys had total operating lease liabilities of $14,433,000. These liabilities are further broken down into current lease liabilities of $2,692,882 and non-current lease liabilities of $11,740,118 for the same period.
For a prospective franchisee, understanding the lease obligations of the franchisor can provide insight into the financial health and stability of the company. Lease liabilities represent the financial obligations Beef O Bradys has for the use of property or equipment under lease agreements. These figures are important because they reflect the company's fixed financial commitments, which can impact profitability and cash flow.
The distinction between current and non-current lease liabilities is also significant. Current lease liabilities ($2,692,882) represent the portion of lease payments due within one year, while non-current lease liabilities ($11,740,118) are those due beyond one year. This breakdown helps in assessing the short-term and long-term financial obligations related to leases. Franchisees may want to inquire about the nature of these leases, such as the properties or equipment involved, the lease terms, and any potential risks associated with these obligations.
Overall, the total operating lease liabilities provide a snapshot of Beef O Bradys's financial commitments related to leased assets. Prospective franchisees should consider these figures as part of their due diligence to understand the financial structure and obligations of the franchisor.