What was the operating cash outflow from operating leases for Lees Famous Recipe in 2023?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
se was $1,526,292, $438,532, and $390,433 for the years ended December 31, 2024, 2023, and 2022, respectively. These costs are recognized as lease expense in the period incurred.
**NOTE 6 - LEASES
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Lees Famous Recipe had an operating cash outflow from operating leases of $383,501 in 2023. This figure represents the actual cash payments made by Lees Famous Recipe during that year for the use of leased properties or assets.
For a prospective franchisee, understanding the operating lease cash outflows is crucial because it reflects the company's financial obligations related to its leases. This information can be useful in assessing the financial health and stability of Lees Famous Recipe. It also provides insight into how the company manages its lease obligations, which can be a significant factor in its overall financial performance.
It's important to note that this figure only represents the cash outflow related to operating leases and does not include other potential lease-related expenses or obligations. Franchisees should consider this information in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of the company's financial position.