For Dermani Medspa, what was the total rent expense for the year ended December 31, 2024?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| NOTE 4 – PREPAID EXPENSES | |
|---|---|
| Prepaid expenses consisted of the following as of December 31, 2024: | |
| Commissions | $ 380,603 |
| Broker fees | 293,882 |
| Total | $ 674,485 |
| NOTE 5 – PROPERTY AND EQUIPMENT | |
| Property and equipment consisted of the following as of December 31, 2024: | |
| Medical devices and machinery | $ 45,716 |
| Furniture and equipment | 24,845 |
| Computers and printers | 8,992 79,553 |
| Less: accumulated depreciation | (25,079) |
| Total | $ 54,474 |
| $ 417,743 (134,930) $ 282,813 | |
| Year ended December 31, | $ 48,310 |
| 2025 | |
| 2026 | 49,760 |
| 2027 | 51,253 |
| 2028 | 52,790 |
| 2029 | 54,374 |
| NOTE 6 – LEASES | 84,565 |
| The Company executed a lease for office space which commenced on March 26, 2021 with a 63 month term. | |
| The current lease expires June 25, 2026 with an option to extend for an additional 60 months through July 1, | |
| 2031. Provisions in the lease allow for a suspension of the initial 3 m |
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the total rent expense for the year ended December 31, 2024, was $155,529. This figure is detailed in the notes to the financial statements and is included within the general and administrative expenses. This indicates the total cost Dermani Medspa Franchising, LLC incurred for its office space during that year.
For a prospective franchisee, understanding the franchisor's rent expense can provide insight into the overhead costs associated with running the franchise system. While this figure reflects the franchisor's expenses, it's a useful benchmark for comparison against potential rent expenses a franchisee might incur when establishing their own Dermani Medspa location. Factors such as location, size, and lease terms will influence a franchisee's actual rent expenses.
It's important to note that this rent expense is specific to Dermani Medspa Franchising, LLC and not necessarily indicative of the rent a franchisee would pay. Franchisees should conduct their own market research to determine average commercial rental rates in their target area. Additionally, they should carefully review their lease agreements and consider negotiating favorable terms to manage their overhead costs effectively. Understanding these costs is crucial for projecting profitability and ensuring the long-term financial health of the franchise.