When did Card My Yard enter into the non-cancellable 36-month operating lease for office spaces?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company determines whether an arrangement is a lease at inception of the lease agreement. The Company entered into a non-cancellable 36-month operating lease for office spaces on April 1, 2021. The lease expires March 31, 2024. The Company considered the terms of the lease agreement to establish their right-of-use asset and lease liability. The lease does not have any material residual value guarantees or material restrictive covenants. The lease does not provide an implicit rate; therefore, the Company uses a risk-free discount rate, using a period comparable with that of the lease term. The Company used the riskfree discount rate on the later of the lease commencement date or the transition to ASC 842, to determine the present value of the lease payments.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, Card My Yard entered into a non-cancellable 36-month operating lease for office spaces on April 1, 2021. The lease is set to expire on March 31, 2024.
The disclosure further specifies that Card My Yard determined whether the arrangement was a lease at the inception of the lease agreement. In assessing the lease, Card My Yard considered the terms of the lease agreement to establish their right-of-use asset and lease liability.
Additionally, the lease does not have any material residual value guarantees or material restrictive covenants. Because the lease does not provide an implicit rate, Card My Yard used a risk-free discount rate, using a period comparable with that of the lease term, to determine the present value of the lease payments. This rate was applied on the later of the lease commencement date or the transition to ASC 842.