Where is the Closet Storage Concepts' variable lease cost located on the statement of operations?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
umulated depreciation on this equipment and vehicles was $10,890 at December 31, 2024.
NOTE 8 LEASES (Continued)
The components of lease expense were as follows:
| Statement of Operations Location | December | 31, 2024 | |
|---|---|---|---|
| Operating | |||
| lease | |||
| cost: | |||
| Lease cost | Cost of goods sold | $ | 59,895 |
| Lease cost | General & administrative expenses | $ | 76,868 136,763 |
| Finance | |||
| lease | |||
| cost: | |||
| Amortization | Cost | $ 259 | |
| of | of | ||
| finance | goods | ||
| leases | sold | ||
| Interest on lease liabilities | Interest expense | 856 $ 1,115 | |
| Short‐term | |||
| lease |
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 is located under General & administrative expenses on the statement of operations.
For the year ending December 31, 2024, the variable lease cost is included within the general and administrative expenses. For the year ending December 31, 2023, the variable lease cost is $22,978 and is also categorized under general and administrative expenses. For the year ending December 31, 2022, the variable lease cost is $23,426 and is also categorized under general and administrative expenses.
This means that when assessing the financial performance of a Closet Storage Concepts franchise, prospective franchisees should look for variable lease costs within the general and administrative expenses section of the income statement. Variable lease costs can fluctuate based on factors like maintenance, utilities, taxes, and insurance, as detailed in Note 8 of the financial statements. Understanding where these costs are reported is crucial for accurate financial analysis and forecasting.