What were the variable lease costs for Moes Southwest Grill for the fiscal year ended 2024?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
st expense, net through the anticipated repayment date utilizing the effective interest rate method.
Future Principal Payments on Long-Term Debt
The annual principal payment requirements for Long-term debt based on the anticipated repayment dates of the S
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the variable lease cost for the fiscal year ended 2024 was $3,516. This figure represents the component of lease expenses that fluctuate based on factors such as revenue or sales volume, as opposed to fixed lease payments.
For a prospective franchisee, understanding variable lease costs is crucial for financial planning. These costs can impact the overall profitability of the Moe's Southwest Grill location, especially during periods of high or low sales. Franchisees should analyze how these variable costs are calculated and what factors influence them to accurately forecast expenses.
It's also important to note that variable lease costs are in addition to operating lease costs, which were $15,590 for the same period. The total operating lease costs, combining both fixed and variable components, amounted to $19,106 in 2024. Franchisees need to consider both types of lease costs when evaluating the financial viability of a location.