What is the approximate monthly rental payment for Carbones Pizzeria's operating lease with the related party?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
that these legal actions will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.
Operating Lease
The Company has a month-to-month operating lease with a related party. Rental payments are approximately $8,000 a month. The lease also provides that the Company pay property taxes, maintenance, i
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the company leases a facility from a limited liability company owned by the stockholder. The monthly rental payments are approximately $8,000.
In addition to the base rent, Carbones Pizzeria is also responsible for paying property taxes, maintenance, insurance, and other occupancy expenses related to the leased premises. The total rent expense for the facility for the year ended October 31, 2024, was approximately $67,000.
For a prospective franchisee, this information indicates that Carbones Pizzeria has a related-party transaction for its operating lease. It's important to note that the monthly rent expense of $8,000 does not include additional costs such as property taxes, maintenance, and insurance, which can significantly increase the overall occupancy expenses. A potential franchisee should inquire about the details of these additional costs to accurately assess the financial implications of the lease.