What was the Closet Storage Concepts' variable lease cost as of December 31, 2023?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
on expense. The accumulated depreciation on this equipment and vehicles was $7,974 at December 31, 2023.
NOTE 8 LEASES (Continued)
The components of lease expense were as follows:
| Statement of Operations Location | December | 31, 2023 | |
|---|---|---|---|
| Operating |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the variable lease cost as of December 31, 2023, was $22,978. This cost is categorized under general and administrative expenses in the statement of operations.
For a prospective Closet Storage Concepts franchisee, understanding variable lease costs is crucial for financial planning. Variable lease costs are those that can fluctuate based on factors like usage or sales, as opposed to fixed lease costs that remain constant. Knowing the amount of variable lease cost helps in forecasting expenses and understanding how operational activities might impact overall costs.
It's important to note that this figure represents the variable lease cost for the Closet & Storage Concepts company-owned locations, not necessarily the costs that a franchisee would incur. Franchisees should inquire about the typical lease arrangements and associated variable costs for their specific location to develop an accurate financial model.