As of December 31, 2024, what are the total minimum lease payments for Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
hrough the lease termination date of June 2034.
The Company's lease expense consisted entirely of operating lease expense of $11,649 for the period April 1, 2024 through December 31, 2024.
Supplemental lease information is as follows for the period April 1, 2024 through December 31, 2024:
| Operating cash flows from operating leases | $ 9,999 |
|---|---|
| Right-of-use assets obt |
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the total minimum lease payments as of December 31, 2024, are $221,526. This figure represents the sum of lease payments due in the coming years, including $20,496 for 2025, $21,111 for 2026, $21,744 for 2027, $22,397 for 2028, $23,068 for 2029, and $112,710 thereafter.
It is important to note that this total does not represent the present value of the lease liabilities. The present value, which accounts for the time value of money by discounting future payments, is listed as $155,795 after deducting imputed interest of $65,731 from the total minimum lease payments. The lease pertains to office space utilized by Degree Wellness.
For a prospective Degree Wellness franchisee, understanding these lease obligations is crucial. While this specific lease relates to the franchisor's office space, it highlights the importance of carefully evaluating lease terms and future payment obligations when securing a location for their own franchise. Franchisees should consult with financial advisors to understand the present value of their own lease liabilities and how these obligations will impact their business's financial health. The FDD also indicates that the company sub-leases a portion of office space from Degree Wellness, LLC with monthly payments of $1,700, escalating annually through June 2034.