What was the reported value of the right-of-use lease asset for Black Bear Diner in 2022?
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 the 2025 Black Bear Diner Franchise Disclosure Document, the reported value of the right-of-use lease asset for the company in 2022 was $709,061. The right-of-use lease asset represents the value of the company's right to use leased properties.
In addition to the right-of-use lease asset, the 2025 FDD also lists the current portion of the lease liability and the lease liability net of the current portion for 2022. The current portion of the lease liability was $95,331, while the lease liability net of the current portion was $658,063.
Prospective franchisees should understand how Black Bear Diner values and accounts for its lease assets and liabilities, as these figures can significantly impact the company's financial health and stability. Reviewing these figures over multiple years, as presented in the FDD, can provide insights into the company's long-term financial commitments and its ability to manage lease obligations.