What was the discount rate used by Craters & Freighters for lease liabilities as of December 31, 2022?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the discount rate used for lease liabilities as of December 31, 2022, was 1.04%. This rate is used to calculate the present value of future lease payments, which determines the lease liability reported on Craters & Freighters' balance sheet.

For a prospective Craters & Freighters franchisee, understanding the discount rate is crucial because it affects the reported lease liability and related expenses. A higher discount rate would result in a lower present value of lease payments, thus decreasing the reported liability and expense. Conversely, a lower rate increases the liability and expense. The 1.04% rate suggests a relatively low cost of borrowing or a conservative approach to valuing lease obligations.

The FDD also indicates that the remaining lease term as of December 31, 2022, was 3.75 years. This information, combined with the discount rate, provides insight into the duration and financial impact of Craters & Freighters' lease commitments. Franchisees should consider these factors when evaluating the company's financial health and future obligations.

It's important to note that these figures are specific to Craters & Freighters' corporate financial statements and may not directly reflect the lease terms or discount rates that individual franchisees will encounter. However, it offers a benchmark for understanding how the company manages its lease obligations.