Has Casiola determined that it has any leases that meet the requirement to recognize a right-of-use asset and liability under FASB ASU No. 2016-02?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
FASB ASU No. 2016-02 — Leases (Topic 842) is effective for the calendar year 2022. The standard requires lessees to recognize right-of-use assets and liabilities for most leases with terms longer than twelve months. The Company has evaluated the impact of this standard on its financial statements and determined that it doesn't have any lease that meet the requirement to recognize a right-of-use asset and liability because the Company doesn't have any long-term leases.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has evaluated the impact of FASB ASU No. 2016-02, Leases (Topic 842), which is effective for the calendar year 2022. This standard requires lessees to recognize right-of-use assets and liabilities for most leases with terms longer than twelve months.
Casiola has determined that it does not have any leases that meet the requirement to recognize a right-of-use asset and liability. This is because Casiola does not have any long-term leases.
For a prospective franchisee, this means that Casiola itself does not have significant long-term lease obligations that would need to be accounted for as assets and liabilities on its balance sheet. However, this does not mean that a franchisee will not have such obligations. Franchisees should carefully review any lease agreements they enter into for their own business locations to determine whether they need to recognize right-of-use assets and liabilities under Topic 842.