What was the operating lease cost for Craters & Freighters as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
nd for the years ended December 31, 2024 and 2023, is as follows:
| As of December 31, | 2024 | 2023 |
|---|---|---|
| Lease cost: | ||
| Operating Lease Cost | $ 52,971 $ | 59,437 |
| Variable Lease Costs | 28,885 | 34,706 |
| Total Lease Costs | $ 81,856 $ | 94,143 |
| Remaining Lease T |
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, 2024, was $52,971. The variable lease costs were $28,885, bringing the total lease costs to $81,856. The remaining lease term was .75 years, and the discount rate was 1.04%.
These figures provide insight into Craters & Freighters's leasing obligations and how they manage their financial responsibilities. For a prospective franchisee, understanding these costs is crucial as it reflects the financial health and stability of the franchisor. Knowing the operating lease costs, variable lease costs, and the remaining lease term can help potential franchisees assess the franchisor's financial commitments and potential risks.
Furthermore, the disclosure of the discount rate offers additional transparency into how Craters & Freighters accounts for its lease liabilities. This information is valuable for potential franchisees as they conduct their due diligence and evaluate the overall financial standing of the franchise system. Reviewing these figures in comparison to previous years can also reveal trends and patterns in the company's leasing practices, offering a more comprehensive understanding of their financial management.