Is the operating lease for Carbones Pizzeria a fixed-term lease or a month-to-month lease?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Operating Lease
The Company leases a facility from a limited liability company which is owned by the stockholder of the Company (See Note 5).
5. Commitments and Contingencies
Operating Lease
The Company has a month-to-month operating lease with a related party. Rental payments are $8,000 a month. The lease also provides that the Company pay property taxes, maintenance, insurance and other occupancy expenses applicable to the leased premise. Total rent expense for this facility for the year ended October 31, 2023 is approximately $82,000.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, Carbones Pizzeria's operating lease is a month-to-month agreement. The company leases a facility from a limited liability company owned by the company's stockholder.
The monthly rental payments are $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.
For the year ending October 31, 2023, the total rent expense for this facility amounted to approximately $82,000. This arrangement indicates that Carbones Pizzeria has a short-term, flexible lease agreement with its related party, but it also carries the responsibility for additional property-related expenses.