How are Right-of-use (ROU) assets recognized by Body Brain Center?

Based on the 2025 Franchise Disclosure Document, Body & Brain Center's accounting practices regarding Right-of-Use (ROU) assets are not explicitly detailed. However, the document does mention leased facilities. Specifically, Body & Brain Center leases its operating facility under a non-cancellable operating lease. Additionally, Body & Brain Center has the right to use a portion of the premises of Body & Brain Yoga and Health Centers, Inc. (BBYHC) under a premises use agreement.

While the FDD mentions these lease agreements, it does not elaborate on how Body & Brain Center recognizes or accounts for these leases as ROU assets on their balance sheet. Modern accounting standards generally require companies to recognize ROU assets and lease liabilities for most leases, reflecting the right to use an asset for the lease term. The absence of specific details suggests that prospective franchisees should seek clarification from Body & Brain Center regarding their accounting policies for leases.

To gain a comprehensive understanding, potential franchisees should inquire about the specifics of Body & Brain Center's ROU asset accounting, including the recognition, measurement, and presentation of these assets and related liabilities in their financial statements. Understanding these accounting practices is crucial for assessing the financial obligations and performance of Body & Brain Center.