What was the total lease liability for Crawlspace Medic as of December 31, 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 | 6,644 | |
| Non-current portion of lease liability | 12,914 | 21,535 | |
| Total Lease Liabi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total lease expense for the year ending December 31, 2022, was $1,886. This figure represents the cost associated with leasing office space or other facilities used by Crawlspace Medic.
For a prospective franchisee, understanding the franchisor's lease expenses can provide insight into the overall financial health and operational costs of the company. While this specific figure reflects Crawlspace Medic's expenses, it's important to note that franchisees will also incur their own lease expenses for their individual locations, which are separate from the franchisor's. These costs can vary significantly depending on location, size, and lease terms.
It is important for potential Crawlspace Medic franchisees to conduct thorough due diligence and carefully consider all potential expenses, including lease costs, when evaluating the financial viability of the franchise opportunity. Reviewing the complete financial statements and seeking professional advice can help in making an informed decision.