What was the total lease cost for Craters & Freighters in 2022?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the total lease costs for the company in 2022 amounted to $107,833. This figure is comprised of two components: operating lease costs and variable lease costs. In 2022, the operating lease cost was $85,687, while the variable lease costs totaled $22,146.

For a prospective Craters & Freighters franchisee, understanding these lease costs is crucial for financial planning. Lease costs can significantly impact the profitability of a franchise, and it's important to consider both the fixed operating lease costs and the variable costs, which may fluctuate based on factors such as usage or market conditions. The FDD also indicates that the remaining lease term as of December 31, 2022, was 3.75 years, and the discount rate was 1.04%.

It is important to note that these figures pertain to the Craters & Freighters corporate entity and may not directly reflect the lease costs a franchisee would incur. Franchisees should carefully review their own lease agreements and consult with financial advisors to understand their specific obligations and expenses. Factors such as location, size of the premises, and local market rates can significantly influence lease costs for individual franchise locations.

Furthermore, the FDD mentions that the company leases office space from a third party, and the option to renew is at the lessor's discretion. This highlights a potential risk for franchisees, as lease renewals are not guaranteed and could impact long-term business operations. Prospective franchisees should inquire about the terms of their lease agreements and consider negotiating renewal options to mitigate this risk.