What was the operating lease cost for Craters & Freighters in 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
due under the lease contracts include fixed payments.
Information on the operating lease as of and for the years ended December 31, 2023 and 2022, is as follows:
| 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 for the years ended December 31, 2023 | ||
| and 2022, is as follows: | ||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 FDD, Craters & Freighters' operating lease cost for the year 2023 was $59,437. This figure represents the expense incurred by Craters & Freighters for leasing office space. In addition to the operating lease cost, Craters & Freighters also incurred variable lease costs of $34,706, bringing the total lease costs to $94,143 for 2023.
The remaining lease term as of December 31, 2023, was 1.75 years, with a discount rate of 1.04%. The cash paid for amounts included in the measurement of lease liabilities related to operating leases was $75,513 for the same year. These figures provide insight into the company's lease obligations and how they impact its financial statements.
Prospective franchisees should consider these lease costs when evaluating the financial health and stability of Craters & Freighters. Understanding the nature and terms of the company's leases can help franchisees assess potential risks and opportunities associated with the franchise. Additionally, comparing these costs to industry benchmarks can provide further context and inform decision-making.