What is the latest year that Ben Jerrys has a non-cancelable real estate lease agreement expiring?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Year Ending December 31, | Amount | |---|---|---| | | | | | 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 | Notes to Consolidated Financial Statements
December 31, 2024 and 2023
(Dollars in Thousands)
(6) Leases
The Company, as a lessee, is obligated under non-cancelable lease agreements for the rental of real estate property that expire through June 2026 and a vehicle which expired in December 2024.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the company is obligated under non-cancelable lease agreements for real estate property that expire through June 2026. These real estate leases are considered operating leases and may include renewal options and escalation clauses. These clauses could lead to increased rental costs based on fixed rates, real estate taxes, and the landlords' operating expenses.
As of December 31, 2024, the weighted average remaining lease term for these operating leases was 3.5 years, with a weighted average discount rate of 2.3%. This indicates the average time left on the leases and the rate used to calculate the present value of future lease payments.
For a prospective franchisee, this information is relevant because it shows that Ben Jerrys has ongoing lease obligations that extend into the future. While these are the obligations of Ben Jerrys as a company and not necessarily the franchisee, understanding the franchisor's financial commitments can provide insight into the company's overall financial health and stability. Franchisees may want to inquire about how these lease obligations could indirectly affect the franchise system.