When does Dermani Medspa's office lease in Duluth, Georgia expire?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company recognizes leases in accordance with ASC 842, Leases. The Company has a lease for its office in Duluth, Georgia which expires in July 2031. The lease is included as an asset in the Company's balance sheet and represents the Company's right to use the underlying asset for the lease term. The Company's obligation to make lease payments is included as a liability in the Company's balance sheet. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Because the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the company has a lease for its office in Duluth, Georgia. This lease expires in July 2031. The lease is considered an asset on Dermani Medspa's balance sheet, representing the company's right to use the office space for the duration of the lease term.
Dermani Medspa's obligation to make lease payments is recorded as a liability on the company's balance sheet. The operating lease right-of-use assets and liabilities are recognized at the start of the lease, based on the present value of the lease payments over the lease term.
Because the interest rate implicit in the lease agreement isn't readily available, Dermani Medspa uses its incremental borrowing rate to determine the present value of the lease payments. This is a standard accounting practice when the implicit rate cannot be easily determined.