When does the current operating lease agreement for Caring Transitions expire?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
to be repaid as follows:
| 2025 | $ 33,137 |
|---|---|
| 2026 | 11,275 $ 44,412 |
3. OPERATING LEASE AGREEMENT:
The Company rents office space from a related party under a lease agreement that originally expired April 30, 2024. The lease was revised during 2023 and expired February 29, 2024. On March 1, 2024, the Company entered into a new operating lease agreement with a related party for office space requiring escalating monthly rent which expires on May 31, 2028. Variable lease costs, such as the Company's proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance that are not included in the lease liability, are recognized in the period in which they are incurred. Short term lease cost represents the Company's cost with respect to leases with a duration of 12 months or less
and is not reflected on the Company's balance sheet. The Company has no leases with variable costs or short-term leases at December 31, 2024.
Total
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company rents office space from a related party. The initial lease agreement expired on April 30, 2024, and was subsequently revised to expire on February 29, 2024.
On March 1, 2024, Caring Transitions entered into a new operating lease agreement with a related party for office space. This new lease features escalating monthly rent payments.
The current operating lease agreement for Caring Transitions expires on May 31, 2028. In addition to the base rent, Caring Transitions is responsible for variable lease costs, such as its share of utilities, common area maintenance, property taxes, and insurance. These variable costs are recognized in the period they are incurred and are not included in the lease liability. The company had no leases with variable costs or short-term leases as of December 31, 2024.
For the years ending December 31, 2024, 2023, and 2022, Caring Transitions' total operating lease expense was $151,909, $147,877, and $140,779, respectively. This information is relevant for prospective franchisees as it provides insight into the company's lease obligations and related expenses, which can impact its financial performance.