When does the non-cancellable operating lease for Carbones Pizzeria with the related party expire?
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 the 2025 FDD, Carbones Pizzeria leases a facility from a limited liability company owned by the company's stockholder. The operating lease is on a month-to-month basis. The monthly rental payments are approximately $8,000.
In addition to the base rent, Carbones Pizzeria is responsible for paying property taxes, maintenance, insurance, and other occupancy expenses related to the leased premises. The total rent expense for this facility for the year ended October 31, 2024, was approximately $67,000.
Because the lease is month-to-month, there is no fixed expiration date. This arrangement provides flexibility for both Carbones Pizzeria and the related party, but it also introduces some uncertainty. Carbones Pizzeria could face the risk of needing to relocate on short notice if the related party decides to terminate the lease. A prospective franchisee should consider the potential impact of this lease arrangement on the stability and predictability of their business operations.