What was the operating lease expense for Monicals Pizza in 2023?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| Finance lease expense: | |||
| Amortization of right-of-use assets | $ 389,353 | $ 378,130 | |
| Interest on lease liabilities | 34,125 | 34,864 | |
| Operating lease expense | 921,851 | 906,435 | |
| Total lease expense | $ 1,345,329 | $ 1,319,429 |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the operating lease expense for the company in 2023 was $906,435. This figure represents the cost associated with leasing properties or equipment used in the operation of Monicals Pizza restaurants.
For a prospective franchisee, understanding the operating lease expense is crucial because it reflects a significant ongoing cost of running the business. It is important to note that this figure represents the consolidated expense for Monicals Pizza Corporation and its subsidiaries, including both company-owned and franchised locations. Individual franchisees will incur their own operating lease expenses based on their specific restaurant locations and lease agreements.
When evaluating a franchise opportunity with Monicals Pizza, prospective franchisees should carefully review their individual lease terms and consider how these expenses will impact their profitability. They should also compare these costs to industry benchmarks and consider negotiating favorable lease terms to manage their operating expenses effectively. Understanding these expenses is vital for assessing the financial viability of a Monicals Pizza franchise.