What was the finance lease liability for Creative World School as of December 31, 2024?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ffice space from a related party under an operating lease that is expected to be renewed through at least April 2026. The Company has the option to renew the lease annually and is expected to do so in the normal course of business. The lease was amended May 2024 for a rent increase of $13,000 per month. Additionally, the Company has a finance lease for office equipment expiring October 2025. The Company will have the option to lease the office equipment on a month-to-month basis after the initial lease term.
As of December 31, 2024, 2023, and 2022, the operating and finance leas
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the finance lease liability as of December 31, 2024, was $1,732. The document also provides the finance lease liabilities for the preceding years, which were $3,786 as of December 31, 2023, and $5,815 as of December 31, 2022. This indicates a decreasing liability over these three years.
Creative World School has a finance lease for office equipment that is set to expire in October 2025. After the initial lease term, the company has the option to continue leasing the equipment on a month-to-month basis. This arrangement provides Creative World School with flexibility regarding its office equipment needs beyond the initial lease period.
In addition to the finance lease, Creative World School also leases office space from a related party under an operating lease. The operating lease is expected to be renewed through at least April 2026, with the option to renew annually. The operating lease liabilities were $201,334 as of December 31, 2024, $193,047 as of December 31, 2023, and $274,060 as of December 31, 2022. The lease was amended in May 2024, resulting in a rent increase of $13,000 per month.