What was the total lease expense for Crawlspace Medic for the year ended December 31, 2022?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total lease expense for the years ended December 31, 2023 and 2022 was $1,167 and $1,886, respectively. This indicates that in 2022, Crawlspace Medic's total lease expenses amounted to $1,886.

It's important to note that this figure represents the total lease expense for Crawlspace Medic itself, and not necessarily the lease expenses a franchisee might incur. A franchisee's lease expenses will depend on factors such as the location and size of their business premises, which can vary significantly.

Additionally, the FDD also states that prior to the adoption of ASC 842, the company's rent expense was $14,844 for the year ended December 31, 2022. This figure differs from the total lease expense of $1,886, possibly due to the adoption of FASB ASC 842, Leases, using the optional transition method that allows the Company to initially apply the new leases standard at the adoption date, January 1, 2022. A prospective franchisee should inquire about the differences in these figures and how the adoption of ASC 842 impacts the reported lease expenses.