What was the net value of Clear Pest Pros' right-of-use assets as of December 31, 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ing the audit.
March 19, 2025
Consolidated Balance Sheets (dollars in thousands)
| December 31, | 2024 | 2023 | 2022 (as restated) |
|---|---|---|---|
| Assets | |||
| Current Assets Cash Restricted cash Accounts receivable, net Inventory (Note 6) Notes receivable, current portion net of allowance (Note 7) Prepaid expenses and other current assets | $ 1,242 1,310 2,728 8,673 578 454 | $ 3,701 781 2,338 5,683 639 625 | $ 1,372 345 3,074 4,393 1,661 346 |
| Total Current Assets | 14,985 | 13,767 | 11,191 |
| Right-of-Use Assets, Net | 2,036 | 3,098 | 1,379 |
| Property and Equipment, Net (Note 8) | 1,675 | 2,220 | 1,701 |
| Goodwill (Note 9) | - | 10,519 | 56,056 |
| Intangible Assets, Net (Note 9) | 23,789 | 28,264 | 32,566 |
| Other Assets Notes receivable - net of current portion and allowance (Note 7) Amounts due from related parties (Note 14) Deferred commissions Other no |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the net value of their right-of-use assets as of December 31, 2023, was $3,098. This figure represents the value of assets that Clear Pest Pros has the right to use under lease agreements, such as facilities. These assets are reported on the balance sheet and reflect the company's rights to use certain properties or equipment for a specified period.
Right-of-use assets are a result of accounting standards that require companies to recognize lease assets and liabilities on their balance sheets. For a prospective Clear Pest Pros franchisee, understanding the value and management of these assets is important because it reflects the company's financial obligations and how efficiently it manages its leased resources. The value of right-of-use assets can impact the overall financial health and stability of Clear Pest Pros, which indirectly affects franchisees through brand reputation and support systems.
The FDD also provides additional context regarding Clear Pest Pros' leasing activities. The company's obligations under operating leases primarily cover facilities, with lease expiration dates extending through December 2026. These leases often require Clear Pest Pros to cover costs such as taxes, insurance, utilities, and maintenance. In 2023, the total rent expense for these leases amounted to approximately $1,051. These details help prospective franchisees understand the nature and extent of Clear Pest Pros' lease commitments and how they manage their operational costs related to leased assets.