What was the operating lease cost for Craters & Freighters as of December 31, 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 f |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the operating lease cost as of December 31, 2023, was $59,437. The FDD also specifies variable lease costs of $34,706 for the same period. Therefore, the total lease costs for Craters & Freighters amounted to $94,143 as of December 31, 2023.
This information is relevant for prospective franchisees as it provides insight into the lease-related expenses that Craters & Freighters incurs at the corporate level. While a franchisee's specific lease costs will depend on their location and lease terms, understanding the franchisor's lease obligations can offer a benchmark for assessing potential overhead expenses. It's important to note that these figures represent the costs for the franchisor's office space and may not directly translate to the costs a franchisee will face for their own business location.
The remaining lease term as of December 31, 2023, was 1.75 years, with a discount rate of 1.04%. Additionally, the cash paid for amounts included in the measurement of lease liabilities related to operating leases was $75,513 for the year ended December 31, 2023. These details provide a more comprehensive view of Craters & Freighters' lease obligations and cash flow management related to leases.
Prospective franchisees should consider these figures in conjunction with other financial disclosures in the FDD to develop a well-rounded understanding of the franchisor's financial health and expense structure. While the franchisor's lease costs may not directly impact a franchisee's operations, they contribute to the overall financial stability and operational efficiency of the Craters & Freighters franchise system.