What are the Crepe De Licious future minimum lease payments for 2026?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the future minimum lease payments under non-cancelable operating leases as of December 31, 2024, for the year 2026 are $245,737. This figure represents the company's obligation for its retail space and vehicle leases. These leases extend through 2028, 2026, and 2025, respectively.

It's important to note that in addition to the fixed base rental amount, most of the leases require additional variable payments. These variable payments cover non-lease components and non-components such as real estate taxes, utilities, property insurance, and excess mileage fees. The variable lease payments for retail space are calculated using eight percent of retail sales over the minimum gross sales of $824,000, payable in monthly increments once this minimum is reached.

For a prospective Crepe De Licious franchisee, understanding these lease obligations is crucial. The $245,737 represents only the minimum fixed payment for 2026. Franchisees should anticipate additional expenses for variable costs, which can fluctuate based on sales performance and other operational factors. It is also important to note that the company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Therefore, when evaluating the financial viability of a Crepe De Licious franchise, candidates must carefully consider both the fixed and variable lease expenses. They should also inquire about the historical trends of these costs and factor in potential increases in property taxes, utilities, and insurance to develop a realistic financial projection.