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What is the estimated lease liability for Ben Jerrys after 4 years, specifically in 2028 and thereafter?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

Within 1 Year 2024 $ 83
After 1 Year but within 2 Years 2025 84
After 2 Years but within 3 Years 2026 86
After 3 Years but within 4 Years 2027 87
After 4 Years 2028 Thereafter $ 44 384
Less: imputed interest 20
Lease liability at December 31, 2023 $ 364

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, the estimated lease liability after 4 years, specifically in 2028 and thereafter, is detailed in the financial statements. The document indicates that the lease liability for this period is estimated to be $44,384 before deducting imputed interest. After subtracting the imputed interest, which amounts to $20, the remaining lease liability is $384.

This information is crucial for prospective Ben Jerrys franchisees as it provides insight into the long-term financial obligations associated with leasing property for their franchise location. Understanding the breakdown of lease liabilities over time allows franchisees to plan their finances effectively and assess the affordability of the franchise. The distinction between the total lease liability and the amount remaining after imputed interest is also important for accurate financial forecasting.

It is important to note that these figures are based on the lease liability as of December 31, 2023, and may not reflect current or future lease terms negotiated by individual franchisees. Factors such as location, lease duration, and prevailing market conditions can influence actual lease liabilities. Therefore, prospective franchisees should consult with financial advisors and legal professionals to review their specific lease agreements and understand the potential financial implications.

In summary, while the FDD provides a general overview of lease liabilities, franchisees should conduct their own due diligence to determine the specific terms and conditions of their lease agreements and how these obligations will impact their overall financial performance. This includes carefully reviewing the lease terms, understanding the imputed interest calculations, and seeking professional advice to ensure they are fully informed about their financial responsibilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.