What was the current portion of the lease liability for Crawlspace Medic in 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
f the individual lease terms.
Amounts reported on the balance sheet as of December 31, 2023 and 2022 were as follows:
| Operating Leases: | 2023 | 2022 | |
|---|---|---|---|
| ROU asset | $ 35,224 | $ 35,224 | |
| ROU amortization | (14,090) | (7,045) | |
| Total ROU Asset, Net | $ 21,135 | 28,179 | |
| Lease liability: | |||
| Current portion of lease liability | $ 7,054 | 6, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the current portion of the lease liability for 2022 was $6,644. This figure represents the amount of the lease obligation that Crawlspace Medic expected to pay within the next 12 months from the end of the 2022 fiscal year. Lease liabilities typically arise when a company leases property or equipment for use in its operations.
For a prospective Crawlspace Medic franchisee, understanding the lease liability is crucial because it reflects the company's short-term financial obligations related to its leases. This information can help potential franchisees assess the financial health and stability of the franchisor. Knowing the current portion of the lease liability allows franchisees to gauge the immediate demands on the company's cash flow.
It's important to note that this figure only represents the current portion of the lease liability. The non-current portion, which is the amount due beyond the next 12 months, was $21,535 in 2022. The total lease liability for Crawlspace Medic in 2022 was $28,179. Reviewing both the current and non-current portions provides a more complete picture of the company's overall lease obligations.