What was the value of Crepe De Licious's operating leases (right-of-use assets) in 2023?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Yea Decemb 2023 | ars Ended per 31, 2022 | |||
|---|---|---|---|---|
| Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases | $ 232,777 | $ 228,850 | ||
| Right-of-use assets obtained in exchange for lease obligations | ||||
| Operating leases | $ 20,901 | $ 1,346,206 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the value of right-of-use assets obtained in exchange for operating leases was $20,901 as of December 31, 2023. This figure represents the value of the company's rights to use leased retail space and vehicles.
Right-of-use (ROU) assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Crepe De Licious leases retail space and two vehicles under operating lease arrangements through 2028, 2026 and 2025, respectively. Most of the leases require additional variable payments for non-lease components and non-components such as real estate taxes, utilities, property insurance and excess mileage fees.
It is important to note 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. These variable lease payments are payable in monthly increments after the minimum gross sales amount is reached. Changes in sales volume are treated as variable lease payments and are excluded from the measurement of the ROU asset and lease liability.