What are the total lease payments 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 for the years ended December 31, 2023 | ||
| and 2022, is as follows: | ||
| 2023 | 2022 | |
| Operating Cash Flows from Operating Leases | $ 75,513 $ | 73,473 |
| Maturities of lease liabilities are as follows as of December 31, 2023: | ||
| Year |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the maturities of lease liabilities are detailed as of December 31, 2023. The total lease payments are calculated before deducting imputed interest.
Specifically, for the year 2024, the lease payments amount to $76,496, and for the year 2025, the lease payments are $67,655. The total lease payments amount to $144,151. After deducting imputed interest of $1,370, the net total is $142,781.
This information is crucial for prospective franchisees as it provides insight into the company's lease obligations and payment schedules. Understanding these financial commitments can help franchisees assess the financial stability and operational costs associated with Craters & Freighters.