What was the net value of Black Bear Diner's right-of-use lease assets in 2023?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
months or less are considered short-term leases and are not recorded on the accompanying balance sheet. Variable lease payments consist primarily of operating expenses, property taxes, and maintenance, which are not included in the recognition of ROU lease assets and the related l
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the value of the company's right-of-use lease assets for 2023 was $610,424. The right-of-use asset represents the company's right to use an asset (such as property or equipment) for the term of a lease. This figure reflects the initial value of the lease asset, which is then subject to amortization over the lease term.
Also included in the provided financial data are the current portion of the lease liability, which was $100,138 in 2023, and the lease liability net of the current portion, which was $557,925 for the same year. The current portion of the lease liability represents the amount of lease payments due within one year, while the net lease liability is the total outstanding lease obligation less the current portion.
Prospective franchisees should understand how Black Bear Diner accounts for its leases, as this can impact the company's financial statements and key financial ratios. Reviewing these figures over multiple years can provide insights into the company's leasing strategy and its obligations. It is also important to note that these figures pertain to the company-owned restaurants and may not directly reflect the financial obligations of a franchisee, who will have their own lease arrangements.