What amount of operating cash flows from operating leases did Craters & Freighters pay in 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Lease cost: | ||
| Operating Lease Cost | $ 59,437 $ | 85,687 |
| Variable Lease Costs | 34,706 | 22,146 |
| Total Lease Costs | $ 94,143 | 107,833 |
| Remaining Lease Term | 2.75 Years | 3.75 Years |
| Discount Rate | 1.04 % | 1.04 % |
| Cash paid for amounts included in the measurement of lease liabilities f |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the operating cash flows from operating leases for the year 2023 was $75,513. This figure represents the actual cash outflow related to Craters & Freighters' operating leases during that year.
For a prospective franchisee, understanding this figure is crucial for assessing the company's financial health and stability. It provides insight into how Craters & Freighters manages its lease obligations and how these obligations impact its overall cash flow. A consistent and manageable operating lease cash flow indicates sound financial planning and risk management.
It's important to note that this figure only reflects the cash flows from operating leases and does not include other lease-related expenses such as variable lease costs or the total lease costs. Franchisees should consider all lease-related expenses when evaluating the financial performance of Craters & Freighters. Reviewing these figures over several years can reveal trends and potential future liabilities related to leasing.
Furthermore, the FDD also includes details on the maturities of lease liabilities, providing a breakdown of lease payments due in the coming years. This information can help potential franchisees understand the long-term lease obligations of Craters & Freighters and assess the potential impact on future cash flows.