What was the interest on lease liabilities for Monicals Pizza's finance leases in 2022?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the interest on lease liabilities related to finance leases was $16,152 in 2022. This figure represents the cost of financing the right-of-use assets under finance lease agreements for that year.

For a prospective franchisee, understanding the interest on lease liabilities is crucial for assessing the overall cost of leasing restaurant locations or equipment. Finance leases, in particular, transfer many of the risks and rewards of ownership to the lessee, resulting in the recognition of an asset and a liability on the balance sheet. The interest expense reflects the cost of borrowing to finance these assets.

It's important to note that this interest expense is separate from the amortization of the right-of-use assets, which was $219,501 in 2022. Both these figures, along with operating lease expenses, contribute to the total lease expense, which amounted to $1,136,032 in 2022. Franchisees should carefully evaluate all lease-related expenses to ensure financial viability.

These lease expenses can fluctuate based on factors such as changes in interest rates, the terms of the lease agreements, and the value of the underlying assets. Therefore, it is essential for potential Monicals Pizza franchisees to conduct thorough due diligence and seek professional financial advice to fully understand the implications of lease liabilities on their business.