Does Body Brain Center have any finance leases under ASC 842?

Based on the 2025 Franchise Disclosure Document, the provided excerpts do not specify whether Body Brain Center has any finance leases under ASC 842. The document does mention that "The Company leases its operating facility under non-cancellable operating lease." and that "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."

Because the provided FDD excerpts do not provide details on finance leases, a prospective franchisee should directly ask Body Brain Center's franchisor about any existing finance leases. Specifically, inquire about the terms, amounts, and assets involved in such leases. Understanding the company's obligations under finance leases is crucial for assessing its financial health and stability.

It is important to note the distinction between operating leases and finance leases. Operating leases are typically short-term and do not transfer ownership of the asset, while finance leases are longer-term and effectively transfer ownership to the lessee. The accounting treatment for these two types of leases differs significantly under ASC 842, so understanding which type of leases Body Brain Center has is important for a complete financial picture.