Does Fast Fix Jewelry And Watch Repairs currently provide lease guarantees?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE
CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE
This Conditional Assignment and Assumption of Lease (the "Assignment") is made, entered into and effective as of the effective date of the Lease (as defined herein below), by Jewelry Repair Enterprises, Inc., a Pennsylvania corporation, with its principal place of business at 6413 Congress Avenue, Suite 240, Boca Raton, Florida 33487 ("we," "us" or "our") and, a(n){corporation, limited liability company}, with its principal place of business at ("you" or "your"). BACKGROUND INFORMATION We entered into that cert
Note 10. Leases
The Company leases retail space in shopping centers for many corporate stores, as well as on behalf of certain franchisees, under non-cancelable operating leases. The leases expire at various dates through 2030. Certain lease agreements contain renewal options. For those leases, the Company included these renewal periods in the lease term if the Company determined it was reasonably certain to exercise the option. Lease payments during such renewal periods were also considered in the calculation of right-of-use assets and lease obligations. Fixed lease payments consist of base rent and operating expenses but do not include contingent rentals which may be required under certain leases based on sales more than stipulated minimums. Fixed lease expense under these agreements totaled approximately $568,000 and $1,001,000 for the years ended December 31, 2023 and 2022, respectively.
Source: Item 10 — FINANCING (FDD page 19)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Fast Fix Jewelry And Watch Repairs does not explicitly state that they provide lease guarantees to franchisees. However, the document includes a section titled "CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE," suggesting that under certain conditions, Jewelry Repair Enterprises, Inc. (the franchisor) may conditionally assign and the franchisee assumes the lease.
Item 10 in the financial statement notes that "The Company leases retail space in shopping centers for many corporate stores, as well as on behalf of certain franchisees, under non-cancelable operating leases." This indicates that Fast Fix Jewelry And Watch Repairs may assist franchisees in securing retail space leases. The leases expire at various dates through 2030, and some agreements contain renewal options that the company may exercise.
While the FDD mentions the company leases space on behalf of franchisees, it does not detail the specific circumstances under which this occurs or the extent of the support provided. A prospective franchisee should clarify with Fast Fix Jewelry And Watch Repairs the conditions and requirements for the "Conditional Assignment and Assumption of Lease," as well as the level of support they offer in lease negotiations and procurement. Understanding these details is crucial for assessing the financial obligations and risks associated with securing a suitable location for a Fast Fix Jewelry And Watch Repairs franchise.