What was the current portion of Body Brain Center's operating lease liabilities in 2023?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company leases its operating facility under non-cancellable operating lease. The Company also has the right to use the permitted portion of the premises of Body & Brain Yoga and Health Centers, Inc. (BBYHC), subject to the terms and provisions under a premises use agreement.
The following is a schedule by year of minimum future yearly rental payments related to the operating facility lease as of December 31, 2023:
Notes to the Financial Statements December 31, 2023 and 2022
NOTE D - COMMITMENTS (CONTINUED)
Leased Facilities (Continued)
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Body Brain Center leases its operating facility under a non-cancellable operating lease. The company also has the right to use the permitted portion of the premises of Body & Brain Yoga and Health Centers, Inc. (BBYHC), subject to the terms and provisions under a premises use agreement. The FDD includes a schedule of minimum future yearly rental payments related to the operating facility lease as of December 31, 2023.
However, the provided excerpts from the 2025 FDD do not specify the exact current portion (i.e., the amount due within one year) of Body Brain Center's operating lease liabilities for 2023. While the document mentions the existence of operating leases and provides a schedule of future payments, it does not break down the total lease liability into current and long-term portions.
A prospective Body Brain Center franchisee should ask the franchisor for the specific amount of the current portion of operating lease liabilities as of December 31, 2023. This information is crucial for assessing the company's short-term financial obligations and overall financial health. Understanding the lease payment schedule and the portion due within the next year will help a franchisee better evaluate their potential investment and operating costs.