What do the fixed lease payments for Fast Fix Jewelry And Watch Repairs consist of?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
15,000 and $449,000 of unpaid management fees included in accrued expenses on the consolidated balance sheets as of December 31, 2024 and 2023, respectively.
Note 9. 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 mo
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, fixed lease payments consist of base rent and operating expenses. However, these payments do not include contingent rentals, which may be required under certain leases if sales exceed stipulated minimums.
For a prospective Fast Fix Jewelry And Watch Repairs franchisee, understanding the components of fixed lease payments is crucial for budgeting and financial planning. Base rent is the primary, consistent cost for occupying the retail space, while operating expenses can cover items such as common area maintenance, insurance, and property taxes. Franchisees should carefully review their lease agreements to identify all included operating expenses to accurately forecast their monthly costs.
The exclusion of contingent rentals is also significant. If a franchisee's sales surpass the minimum threshold specified in the lease, they may be required to pay additional rent based on a percentage of the excess sales. This can impact profitability, especially in high-performing locations. Franchisees should analyze potential sales volumes and negotiate lease terms to account for the possibility of contingent rentals.
It is important to note that fixed lease expenses for the company totaled approximately $586,000 for the year ended December 31, 2024, and $568,000 for the year ended December 31, 2023. While these figures represent the company's overall lease expenses, they provide context for the scale of lease obligations involved in operating Fast Fix Jewelry And Watch Repairs locations. Prospective franchisees should consult with financial advisors and legal counsel to fully understand the implications of lease agreements and potential rental obligations.