What was the operating lease cost for Expense Reduction Analysts in the first year presented in this table?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
at agreement was $59,642 and $62,511 for the years ended December 31, 2024 and 2023, respectively.
NOTE 7 OPERATING LEASES (CONTINUED)
Qualitative Information concerning the Company's lease for the year ended December 31:
| Operating Lease Cost | $ 63,648 | 65,203 |
|---|---|---|
| Operating Cash Flows from |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the operating lease cost for the earliest year presented in the provided table was $65,203. This figure represents the cost associated with the company's operating leases for that year.
Operating leases are a common business expense, especially for companies that require office space or equipment. Instead of purchasing these assets, Expense Reduction Analysts leases them, which allows them to use the assets without incurring the large upfront costs of buying them. The lease cost covers the right to use the asset over a specified period.
For a prospective franchisee, understanding the franchisor's lease obligations can provide insight into the company's financial health and management practices. It's also useful to note that the monthly rental amounts for office space were $5,137 and $5,577 at December 31, 2023 and 2022, respectively. Total rental expense was $62,511 and $59,207 for the years ended December 31, 2023 and 2022, respectively. Reviewing these figures helps potential franchisees understand the Expense Reduction Analysts' financial obligations and how they manage their resources.