According to the financial
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ariable payments, was $1,187 for the year ended December 31, 2024.
Future minimum annual commitments under these operating leases are as follows:
| Year ending December 31, | |
|---|---|
| 2025 | $ 1,213 |
| 2026 | 1,127 |
| Total | 2,340 |
| Less: amount representing interest | 166 |
| Pres |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the company has long-term obligations under operating leases. The future minimum lease payments for the years ending December 31, 2025, and 2026 are $1,213 and $1,127, respectively, totaling $2,340. The amount representing interest is $166, resulting in a present value of net minimum lease payments of $2,174. The current obligations are $1,087, leaving long-term obligations under operating leases at $1,087. These figures are presented in thousands of dollars.
For a prospective Clear Pest Pros franchisee, understanding these lease obligations is crucial. It indicates the company's financial commitments related to leased properties or equipment. The present value of net minimum lease payments provides a more accurate picture of the actual liability, accounting for the time value of money. The distinction between current and long-term obligations helps in assessing the company's short-term and long-term financial health.
It's important to note that these figures represent only the company's obligations and do not reflect the potential lease obligations that a new franchisee might incur for their own business locations or equipment. Franchisees should consult with financial advisors to fully understand the implications of these lease obligations and how they might affect their investment and profitability. Understanding the franchisor's financial health can provide insights into the stability and support a franchisee can expect.