Where in Exit's financial statements are operating lease costs recorded?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
after the termination date without execution of a new lease, it shall be deemed to be occupying the premises as a tenant from month to month, at 150% of the annual minimum rent and a percentage rent and subject to all other conditions, provisions, and obligations of the lease; provided,
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company's operating lease costs are recorded within general and administrative expenses in the Company's Statements of Income (Loss). This means that when Exit calculates its profit or loss for a specific period, the expenses related to operating leases, such as the cost of renting office space, are included as part of the general and administrative costs.
For the years ending December 31, 2024, 2023, and 2022, Exit recognized $25,897, $23,625, and $21,546 in operating lease costs, respectively. These figures represent the actual expenses Exit incurred for operating leases during those years. The amounts reflect the cost of utilizing leased assets, such as office space, and are accounted for as expenses in the company's financial statements.
This information is relevant for prospective Exit franchisees as it provides insight into how Exit accounts for its lease obligations and the magnitude of these expenses. Understanding where these costs are recorded and their historical values can help franchisees assess the financial health and operational efficiency of Exit. Additionally, it gives potential franchisees an idea of the types of expenses Exit incurs, which can be useful for benchmarking and comparing Exit to other franchise opportunities.