What were the total future lease payments for Brightstar Care as of December 31, 2023?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
and December 31, 2023, respectively.
The following tables present the weighted-average remaining lease term and discount rate:
| Fiscal year ended | December 29, 2024 | December 31, 2023 |
|---|---|---|
| Weighted-average remaining lease term – operating lease | 126 months | 3 months |
| Weighted-average discount rate – operating leases | 4.47% | 1.04% |
| Maturities of operating leases liabilities as of December 29, 2024 are as follows: | ||
| Fiscal year ending | ||
| 2025 | $ 21,125 | |
| 2026 | 26,887 | |
| 2027 | 186,289 | |
| 2028 | 257,347 | |
| 2029 | 265,029 | |
| Thereafter | 1,594,015 | |
| Total |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company's total future lease payments as of December 31, 2023, amounted to $2,350,692. After accounting for the effects of discounting, which totaled $575,352, the total lease liabilities were $1,775,340. The weighted-average remaining lease term for operating leases was 3 months, with a weighted-average discount rate of 1.04%.
The breakdown of these future lease payments shows the amounts due in specific fiscal years. In 2025, $21,125 was due, followed by $26,887 in 2026, $186,289 in 2027, $257,347 in 2028, and $265,029 in 2029. The largest portion, $1,594,015, was categorized as due 'Thereafter.'
This information is relevant for prospective Brightstar Care franchisees as it provides insight into the lease obligations of the company. While franchisees typically handle leasing for their own locations, understanding the franchisor's lease commitments can offer a broader view of the company's financial health and stability. It's important to note that these figures represent Brightstar Care's obligations and not necessarily those of individual franchisees.
Franchisees should consult with financial advisors to understand the implications of lease liabilities and how they might affect the overall financial strategy of the franchise. Reviewing these figures in conjunction with other financial statements in the FDD can provide a more comprehensive understanding of Brightstar Care's financial position.