Is there a geographic limit that affects the operating lease cost for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Richmond, TX 77407 | | |Future maturities of notes payable is as follows for the years ended:
| Year Ending December 31, | Amount |
|---|---|
| 2025 | 33,649 |
| 2026 | 33,649 |
| 2027 | 33,650 |
| Total | $ 100,948 |
NOTE 7 OPERATING LEASES
The Company leases its office space under a noncancellable operating lease. The monthly rental amount is $5,246 and $5,137 at December 31, 2024 and 2023, respectively. Total rental expense under that 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 Operating Leases | $ 62,077 | 65,163 |
| Right-of-Use Assets Obtained in Exchange for | ||
| Operating Lease Liabilities | $ - | 236,135 |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, the company leases its office space under a noncancellable operating lease. The FDD mentions the monthly rental amount was $5,137 at December 31, 2023, and $5,577 at December 31, 2022. Total rental expense under that agreement was $62,511 for the year ended December 31, 2023, and $59,207 for the year ended December 31, 2022.
However, the provided excerpts from the Expense Reduction Analysts FDD do not specify any geographic limitations that would affect the operating lease cost. The document details the company's accounting practices for operating leases, including how they recognize right-of-use (ROU) assets and lease liabilities. These are based on the present value of lease payments over the lease term.
Without explicit details in the provided FDD excerpts, it's not possible to determine if the operating lease costs are affected by geographic limits. A prospective franchisee should ask Expense Reduction Analysts about any geographic factors influencing lease costs and how these might impact their business operations.