For Chem Dry, what was the long-term obligations amount under operating leases after deductions?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
erage remaining lease term at December 31, 2023 is 38 months. The weightedaverage discount rate used at December 31, 2023 is 7.79 percent. Some of the leases require the Company to pay taxes, insurance, utilities, and maintenance costs. Total rent expense under these leases was approximately $1,051, $1,103, and $1,176 for the years ended December 31, 2023, 2022, and 2021, respectively. Total cash paid for operating leases, exclud
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the long-term obligations under operating leases is $2,166. This figure represents the financial commitments Chem Dry has for its operating leases that extend beyond the current year. Operating leases are agreements to use an asset, such as property or equipment, without owning it, and these obligations are a standard part of Chem Dry's business operations.
For a prospective Chem Dry franchisee, understanding these obligations can provide insight into the company's financial structure and its approach to managing lease agreements. The long-term nature of these obligations means that Chem Dry has predictable expenses related to its leased assets, which can be a factor in financial planning and stability.
It's important to note that this figure is net of current obligations, meaning it excludes the portion of lease payments due within the next year. This distinction helps in assessing the long-term financial health of Chem Dry, as it separates immediate liabilities from those extending further into the future. Reviewing the details of these lease obligations can give potential franchisees a clearer picture of Chem Dry's financial commitments and how they might impact the company's overall performance.