What was the total office lease expense for Coffee News in 2022?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| Ben Sprague | 71 Norway Road Bangor, ME 04401 207-852-1405 | 6 | |
|---|---|---|---|
| Jill Mathers | 14 Crystal Rd Crystal, ME 04747 207-538-7170 | 3 | |
| John H. Dyer | 99 Oak St., Apt A, Ellsworth, ME 04605 207-812-1900 | 1 | |
| MARYLAND – 5 | |||
| Thomas L. Balsamo Angela R. Balsamo TAB Publishing dba Coffee News Bowie | 8048 Mayer Avenue, Pasadena, MD 21122 443-790-1360 | 5 | |
| MASSACHUSETTS – 5 | |||
| Nick Ricciarini | 58 Belvidere Ave. Pittsfield, MA 01201 413-212-9126 | 3 | |
| Thomas A. Clarke Holli M. Clarke | 192 Pleasant St #1 Leominster, MA 01453 978-549-8948 | 2 | |
| NAME OF FRANCHISEE | ADDRESS / TELEPHONE | # OF FRANCHISES | |
| MICHIGAN – 5 | |||
| Lora L. Wilson | 687 NE 5th Street Chrystal River, FL 34429 352-637-1960 | 5 | |
| MISSISSIPPI – 10 | |||
| Bethanne Dufour Coffee News of Pine Belt, LLC | 10 Professsional Parkway Hattiesburg, MS 39402 601-606-2266 | 2 | |
| Brian K. Parton | 205 Morris Noble Rd. Ocean Springs, MS 39564 800-359-1410 | 4 | |
| Jac Lynn Sharp | 125 Shirley Dr Pelachatchie, MS 39145 601-209-6420 | 4 | |
| MISSOURI – 5 | ### 3. Borrowing and Leasing |
Coffee News USA, Inc., has a $15,000 unsecured line of credit, of which $0 was outstanding at year end.
The Company had a six-year office lease with an unrelated party for $2,125 per month. Total lease expense for the office was $14,875 in 2022. The lease was terminated in July 2022 and was not renewed.
The Company has elected not to record leases with an initial term of 12 months or less on the statement of financial position. Lease expense on such leases is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to not separate lease and non-lease components and classifies the contract as a lease if consideration in the contract allocated to the lease component is greater than the consideration allocated to any non-lease
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the company's total office lease expense in 2022 was $14,875. The company had a six-year office lease with an unrelated party at a rate of $2,125 per month. The lease was terminated in July 2022 and was not renewed.
In addition to the office lease, Coffee News also incurred equipment lease expenses. In 2022, the equipment lease expense totaled $1,880. These equipment leases are on a month-to-month basis.
It's important to note that the FDD also mentions that Coffee News USA, Inc. has elected not to record leases with an initial term of 12 months or less on the statement of financial position, recognizing the expense on a straight-line basis over the lease term. This accounting practice could affect how potential franchisees evaluate the company's financial obligations related to leases.