What was the non-current operating lease liability for Face Foundrie in 2023?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating lease liability, current | $ | 58,952 | $ 32,486 | $ | 29,204 |
|---|---|---|---|---|---|
| Operating lease liability, non-current | 284,843 | 343,795 | 376,281 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the non-current operating lease liability for 2023 was $343,795. This figure represents the portion of Face Foundrie's operating lease obligations that are not due within the next 12 months. Operating leases typically cover the rental of property or equipment used in the business.
For a prospective Face Foundrie franchisee, understanding the operating lease liability is crucial because it reflects the company's long-term financial commitments related to its leased assets. A higher non-current operating lease liability suggests that Face Foundrie has significant long-term lease obligations, which could impact its financial flexibility.
It's important to note that this liability arises from leases with terms generally exceeding one year, as Face Foundrie expenses short-term leases (12 months or less) on a straight-line basis. The lease agreement in place is for office space, entered into on January 1, 2022, with a ten-year term, and monthly payments that escalate 2% annually. This long-term lease contributes to the non-current operating lease liability. The company shares this leased office space with two related parties, splitting the total monthly lease payment into thirds.