As of December 25, 2024, what is the present value of the lease liability for Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Restricted cash Accounts receivable Accounts payable Accrued expenses | $ 595,018 | $ 697,264 |
| - | 79,952 | |
| 359,583 | 260,503 | |
| 14,577 | 195,340 | |
| Advertising revenues Advertising revenues, related party | 2,477,330 | 2,470,360 |
| 1,801,407 | 1,689,117 | |
| Advertising and related expenses | 4,312,465 | 3,935,736 |
NOTE 5 - COMMITMENTS AND CONTINGENCIES
Leases: The Company leases corporate office space in Redding, California. The lease was entered into effective July 1, 2021 with payments beginning November 1, 2021 and annual incremental base rent payments through lease expiration at the end of October 2029. Rental expe
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the present value of the lease liability as of December 25, 2024, is $658,063. This figure represents the discounted value of the future lease payments, taking into account imputed interest of $32,865.
This liability reflects Black Bear Diner's obligations for its leases. The total minimum lease payments amount to $690,928 over the coming years: $110,184 in 2024, $113,506 in 2025, $116,898 in 2026, $120,406 in 2027, $124,014 in 2028, and $105,920 thereafter. The current portion of the lease liability, which is $100,138, represents the amount due within the next year.
The lease liability, net of the current portion, is $557,925. This provides a snapshot of Black Bear Diner's financial obligations related to its leases, which are a significant part of its overall financial structure. Prospective franchisees should understand how these lease obligations factor into the financial health of the company.