What was the present value of lease liabilities for Body Brain Center after accounting for the effects of discounting?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
er 31, 2024 and 2023, respectively.
As of December 31, 2024, the Company owed $2,006 to BR Consulting Inc., which is included in accounts payable in the accompanying 2024 balance sheet.
Leased Facilities
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, 2024:
| 2025 | $ 8,666 |
|---|---|
| Total lease payments | 8,666 |
| Less: Effects of discounting | 33 |
| Present value of lease liabilities | $ 8,633 |
Rent and lease expense totaled $54,571 for the year ended December 31, 2024.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the present value of lease liabilities, after accounting for the effects of discounting, is detailed for specific years. In 2025, the total lease payments were $8,666. After deducting the effects of discounting, which amounted to $33, the present value of lease liabilities for 2025 was $8,633.
Additionally, the FDD provides a combined figure for 2024 and 2025. The total lease payments for the years ending December 31, 2024, and 2025 were $34,412 and $8,666, respectively, totaling $43,078. The effects of discounting for this period were $650, resulting in a present value of lease liabilities of $42,428.
Furthermore, the FDD provides a combined figure for 2023, 2024, and 2025. The total lease payments for the years ending December 31, 2023, 2024, and 2025 were $33,411, $34,412, and $8,666 respectively, totaling $76,489. The effects of discounting for this period were $3,509, resulting in a present value of lease liabilities of $74,476. This information is relevant for prospective franchisees as it provides insight into Body Brain Center's lease obligations and how they are accounted for in the company's financial statements.