What was the reported high for operating lease costs for Crepe De Licious franchises?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Short-term lease costs | $ 28,000 | $ - |
|---|---|---|
| Operating lease costs | $ 252,391 | $ 246,163 |
| Variable lease costs | $ 5,678 | $ 16,531 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the operating lease costs were $246,163 in 2023 and $252,391 in 2024. This figure represents the expenses associated with leasing retail space and vehicles used in the operation of the Crepe De Licious business. These leases extend through 2028, 2026, and 2025, respectively.
In addition to the base rental amount, Crepe De Licious franchisees typically incur variable payments covering non-lease components such as real estate taxes, utilities, property insurance, and excess mileage fees. These variable costs are separate from the operating lease costs and are reported as $16,531 in 2023 and $5,678 in 2024. The document also mentions short-term lease costs of $28,000 in 2024, with no corresponding costs listed for 2023.
Prospective Crepe De Licious franchisees should consider these lease expenses when evaluating the financial viability of the franchise. Understanding the breakdown between fixed operating lease costs and variable costs is crucial for budgeting and financial forecasting. The variable lease payments are recognized as operating expenses in the period they are incurred, which can impact the overall profitability of the franchise.