What was the amount of operating cash flows from operating leases for Bonchon in 2023?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
credit risk with respect to receivables is limited due to the number of franchisees in the Company's customer base and their geographic dispersion. The Company provides an allowance for credit losses equal to the estimated collection losses based on historical experience coupled with a review of the current market conditions
NOTE 4. PROPERTY AND EQUIPMENT
Property and equipment consisted of the following at December 31, 2024 and 2023:
| Local | |
|---|---|
| Intrastate, IntraLATA Long Distance Service (also known as local toll) | |
| Interstate, InterL |
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the operating cash flows from operating leases in 2023 was $112,460. This figure represents the cash generated or used by Bonchon specifically from its operating lease activities during that year. Operating leases are agreements to use an asset, such as property or equipment, without transferring ownership.
For a prospective Bonchon franchisee, understanding this number provides insight into how Bonchon manages its lease obligations and the impact of those leases on its overall cash flow. It's important to note that this figure is specific to Bonchon's corporate operations and may not directly reflect the lease-related cash flows of individual franchised locations. Franchisees will typically have their own lease agreements for their restaurant locations, which will impact their individual financial performance.
It is also important to note that the company had an operating lease for an office space in New York City that expired on May 31, 2023 and was not renewed. Total operating lease expense for the years ended December 31, 2023 amounted to $99,552. Supplemental cash flow information related to leases was as follows.