What was the remaining lease term 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, as of December 31, 2024, the remaining lease term for their office space was 0.75 years. This indicates that Craters & Freighters had less than a year remaining on their lease at that time.
For a prospective franchisee, this information is relevant because it provides insight into the stability and long-term planning of the franchisor's business operations. A short remaining lease term could suggest that Craters & Freighters may be facing a potential relocation or renegotiation of their lease terms in the near future. This could impact the franchisor's financial obligations and potentially affect the support and services they provide to franchisees.
It's important to note that the lease renewal is at the sole discretion of the lessor, and Craters & Freighters has not included an option to renew in their calculations because renewal is not reasonably certain. This uncertainty could pose a risk to the continuity of Craters & Freighters' operations at their current location. A prospective franchisee should inquire about Craters & Freighters' plans for lease renewal or relocation and how any changes in their office space might affect franchisee support and services.