As of January 31, 2023, what is the present value of leases receivable for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
--------| | Land | $ 104,028 | $ 118,052 | | Leasehold improvements | 3,916 | 8,147 | | Buildings and improvements | 68,563 | 86,423 | | | 176,507 | 212,622 | | Less accumulated depreciation and amortization | (57,231) | (71,465) | | Total assets leased to others | $ 119,276 | $ 141,157 |
The components of lease income for January 31, 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Rent revenue: | ||
| Minimum rent revenue | $ 87,594 | $ 91,482 |
| Variable lease revenue | 6,334 | 6,622 |
| Total rent revenue | $ 93,928 | $ 98,104 |
We sublease to others some of our property under finance leases. These assets are recorded as lease receivables and are included in accounts re
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the company subleases some of its properties under finance leases, which are recorded as lease receivables. The document provides details on future minimum lease and sublease rent revenue as of January 31, 2024, but it does not include the present value of leases receivable as of January 31, 2023.
While the FDD details the future lease revenues, unearned interest income, and the present value of leases receivable as of January 31, 2024, it omits the corresponding figures for the previous year. This makes it impossible to directly compare year-over-year lease-related financial positions using the provided data.
A prospective Carls franchisee should request the specific present value of leases receivable as of January 31, 2023, from the franchisor. This information is essential for a comprehensive understanding of the company's financial performance and risk assessment related to its leasing activities. Understanding the trend in lease receivables is crucial for evaluating the stability and profitability of Carls's subleasing operations.