What was the total value of the operating lease liabilities for Beef O Bradys in 2024?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
0,640 | | Goodwill recognized through store acquisitions | 1,096,872 | | Amortization | (3,282,950) | | Balance, December 31, 2024 | $ 10,544,562 |
Note 8. Leases
The following table presents the consolidated balance sheet location of assets and liabilities related to operating leases as of December 31, 2024 and 2023:
| | 2024 | 2023 | |----------------------------------------
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the total operating lease liabilities for 2024 were $12,395,421. This figure represents the sum of current lease liabilities ($2,495,480) and non-current lease liabilities ($9,899,941). In 2023, the total operating lease liabilities were higher, at $14,433,000, comprising current lease liabilities of $2,692,882 and non-current lease liabilities of $11,740,118.
Operating lease liabilities are a crucial consideration for prospective franchisees as they reflect the financial obligations Beef O Bradys has for the use of leased properties. These liabilities are divided into current (due within one year) and non-current (due beyond one year) portions, providing a clearer picture of the timing of these financial commitments. Understanding the magnitude and structure of these lease obligations is essential for assessing the overall financial health and stability of Beef O Bradys.
For a potential Beef O Bradys franchisee, this information highlights the importance of carefully evaluating lease terms and conditions when securing a location. Lease liabilities can significantly impact a franchisee's operating expenses and profitability. Therefore, franchisees should conduct thorough due diligence, including a review of lease agreements and an assessment of the potential financial risks and rewards associated with leasing versus owning a property. Consulting with a financial advisor or real estate expert is advisable to navigate these complexities effectively.