What is the lease liability for Ben Jerrys as of December 31, 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | ||
|---|---|---|
| Consolidated Balance Sheets | ||
| (In Thousands) | ||
| 2023 | 2022 | |
| Liabilities and Equity | ||
| Current liabilities | ||
| Current portion of operating lease liability | 76 | 73 |
| Current portion of financing lease liability | - | 31 |
| Deferred revenue, noncurrent | 147 | 198 |
| Non-current portion of operating lease liability | 288 | 364 |
| Non-current portion of financing lease liability | - | 5 |
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's lease liabilities are divided into operating and financing leases. As of December 31, 2023, the current portion of the operating lease liability was $76,000, and the non-current portion of the operating lease liability was $288,000. There was no current or non-current portion of financing lease liability listed on the balance sheet as of December 31, 2023.
Therefore, the total operating lease liability for Ben & Jerry's Franchising, Inc. as of December 31, 2023, was $364,000 (the sum of the current and non-current portions). This figure represents the present value of future lease payments for the real estate property the company leases. These leases are considered operating leases, with terms expiring through June 2026.
Prospective franchisees should understand that these lease obligations reflect Ben Jerrys's own commitments as a company. Franchisees will separately incur their own lease expenses for their individual shop locations. The FDD indicates that Ben Jerrys accounts for its leases according to ASC 842, recognizing right-of-use (ROU) assets and lease liabilities at the lease commencement date. The weighted average discount rate of outstanding operating leases as of December 31, 2023, was 2.3%.
It is important to note that the financial statements included in the FDD are unaudited. The notes also mention that the company relies on Unilever and Homemade for support, and the financial statements have been prepared with the understanding that Homemade has the ability and intent to financially support the Company's operations.