What is the expiration date of Crawlspace Medic's operating lease agreement for its office space?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company has an operating lease agreement for its office space. The Company began leasing property located at 1049 Second Avenue, LLC under an operating lease with a term of fifty-four months commencing on June 1, 2021 and expiring on December 31, 2026. The lease agreement has shared costs with other companies under the ownership of Home Brands. The Company includes in the determination of the right to use asset and lease liability any renewal options when the options are reasonably certain to be exercised. The Company elected to use the Company's borrowing rate to all classes of leased assets as the weighted average discount rate represents the risk-free discount rate using a period comparable with that of the individual lease terms.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the company has an operating lease agreement for its office space located at 1049 Second Avenue, LLC. The lease commenced on June 1, 2021, with a term of 54 months. Therefore, the lease is scheduled to expire on December 31, 2026.
The lease agreement includes shared costs with other companies under the ownership of Home Brands. Crawlspace Medic incorporates any renewal options into the determination of the right to use asset and lease liability when these options are reasonably certain to be exercised.
For potential franchisees, this information provides insight into Crawlspace Medic's financial obligations and its relationship with Home Brands. Understanding the lease terms and shared costs can be valuable for assessing the franchisor's financial stability and operational structure.