What was the total amount of lease liabilities for Monicals Pizza in 2023?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 and 2023: | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Right-of-use assets: | |||
| Operating leases | $ 4,675,079 | $ 5,268,530 | |
| Finance leases | 798,818 | 1,134,741 | |
| Total right-of-use assets | $ 5,473,897 | $ 6,403,271 | |
| Lease liabilities: | |||
| Current operating lease liabilities | $ 842,149 | $ 811,560 | |
| Current finance lease liabilities | 353,202 | 343,795 | |
| Long-term operating lease liabilities | 3,934,840 | 4,553,042 | |
| Long-term finance lease liabilities | 504,997 | 813,703 | |
| Total lease liabilities | $ 5,635,188 2024 | 2023 | $ 6,522,100 |
| 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 total lease liabilities for 2023 were $6,522,100. This figure represents the sum of current operating lease liabilities ($811,560), current finance lease liabilities ($343,795), long-term operating lease liabilities ($4,553,042), and long-term finance lease liabilities ($813,703).
For a prospective franchisee, understanding these lease liabilities is crucial. It provides insight into the financial obligations Monicals Pizza has regarding its leases, which can affect the company's overall financial health and stability. Franchisees should consider how these liabilities might impact Monicals Pizza's ability to support its franchisees or invest in the brand's future growth.
It's important to note that these figures reflect the lease liabilities for Monicals Pizza Corporation and its subsidiaries, not necessarily the individual franchisees. However, understanding the franchisor's financial obligations can offer a broader perspective on the financial stability of the entire Monicals Pizza franchise system. Franchisees typically have their own separate lease obligations for their individual locations, which are not included in this consolidated figure.