What is the reported range for lease expenses for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ol. The amount due from the related party is $12,000 and $-0- at December 31, 2024 and December 31, 2023, respectively.
The Company has an amount due from its sole shareholder. This amount does not have a stated interest rate, is unsecured and has no set repayment terms. The amount receivable from the shareholder at December 31, 2024 and December 31, 2023 was $37,405 and $59,831, respectively.
5. Leases
The Company leases retail space and two vehicles under operating lease arrangements through 2028, 2026 and 2025, respectively. In addition, the Company leases office space under a short-term lease arrangement. Also, in addition to a fixed base rental amount, most of the leases require ad
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
I am unable to provide a specific range for lease expenses for Crepe De Licious, as the provided FDD excerpts do not include a table or explicit statement detailing the range of these expenses. The excerpts do mention that Crepe De Licious leases retail space and vehicles, and that most leases require variable payments in addition to a fixed base rental amount. These variable payments may include real estate taxes, utilities, and property insurance. The FDD also states that the company's retail space lease agreement includes variable lease payments calculated using eight percent of retail sales over the minimum gross sales of $824,000.
To get a clear understanding of the potential lease expenses, a prospective Crepe De Licious franchisee should carefully review Item 7 of the 2025 FDD, which outlines the estimated initial investment, including real estate and leasehold improvements. Additionally, they should inquire about the average or typical lease expenses incurred by existing franchisees, taking into account factors such as location, size, and specific lease terms. Understanding these costs is crucial for assessing the overall financial viability of the franchise.
Furthermore, it would be beneficial to discuss with the franchisor how the variable lease payments are calculated and what factors might cause these payments to fluctuate. Understanding the relationship between sales volume and lease expenses is essential for accurate financial forecasting. A prospective franchisee should also seek professional advice from a franchise attorney or financial advisor to review the lease agreement and assess its potential impact on their business.