Where are operating leases included within Body Brain Center's balance sheets?

According to Body Brain Center's 2025 Franchise Disclosure Document, the company leases its operating facility under a non-cancellable operating lease. Further details regarding the leased facilities are provided in the notes to the financial statements. Specifically, as of December 31, 2023, Body Brain Center overpaid $7,487 to BR Consulting Inc., which is included in prepaid expense in the accompanying balance sheet.

For the year ending December 31, 2024, Body Brain Center owed $2,006 to BR Consulting Inc., which is included in accounts payable in the accompanying 2024 balance sheet. Additionally, Body Brain Center has a premises use agreement with Body & Brain Yoga and Health Centers, Inc., where rent expenses amounted to $9,600 for both the years ending December 31, 2024 and 2023.

Prospective franchisees should note that these lease arrangements and related expenses can significantly impact the financial performance of a Body Brain Center franchise. Understanding the terms of these leases and how they are accounted for in the financial statements is crucial for assessing the overall financial health and stability of the franchise. It is advisable to review the complete financial statements and related notes in the FDD to gain a comprehensive understanding of Body Brain Center's lease obligations and their potential impact on profitability.