What was the interest expense from finance leases for Monicals Pizza in 2023?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the interest expense on lease liabilities related to finance leases was $34,864 in 2023. This figure reflects the cost of borrowing associated with Monicals Pizza's financing of certain assets through lease agreements.

For a prospective franchisee, understanding the interest expense on finance leases is crucial because it represents a real cost of doing business. Finance leases are essentially a way for Monicals Pizza to acquire assets (like equipment or property) without paying the full purchase price upfront. Instead, they make regular lease payments, a portion of which covers the interest expense.

This expense is important for franchisees to consider when evaluating the overall profitability of a Monicals Pizza franchise. It is also relevant when comparing the cost of leasing versus buying assets outright. Franchisees should carefully review all lease agreements and understand the terms, including interest rates, payment schedules, and any potential penalties for early termination.

It's also worth noting that Monicals Pizza also incurred expenses related to the amortization of right-of-use assets and operating leases, which are separate from the interest expense on finance leases. A detailed understanding of all these lease-related expenses is essential for accurate financial planning and management.