What was the total amount of operating lease right-of-use assets for Monicals Pizza in 2022?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------|---------------|---------------| | Right-of-use assets: | | | | Operating leases | $ 5,268,530 | $ 5,883,091 | | Finance leases | 1,134,741 | 1,024,072 | | Total right-of-use assets | $ 6,403,271 | $ 6,907,163 | | Lease liabilities: | | | | Current operating lease liabilities | $ 811,560 | $ 835,056 | | Current finance lease liabilities | 343,795 | 300,663 | | Long-term operating lease liabilities | 4,553,042 | 5,130,333 | | Long-term finance lease liabilities | 813,703 | 730,688 | | Total lease liabilities | $ 6,522,100 | $ 6,996,740 |
Below is a summary of expenses incurred
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the total amount of operating lease right-of-use assets for the company in 2022 was $5,883,091. This figure represents the value of the company's rights to use leased assets, specifically those obtained through operating leases, as recorded on their balance sheet for that year. These assets are a result of lease agreements for properties or equipment used in the operation of Monicals Pizza restaurants.
For a prospective franchisee, understanding this figure provides insight into the scale of Monicals Pizza's leasing obligations and how they manage their assets. Operating leases are a common way for businesses to acquire the use of assets without purchasing them outright, which can free up capital for other investments. The right-of-use asset reflects the franchisee's right to use the leased asset over the lease term.
It's important to note that this figure is part of a broader financial picture, and potential franchisees should consider it in conjunction with other financial data, such as lease liabilities and operating expenses, to fully assess the company's financial health and leasing strategy. Additionally, the FDD notes that the operating right-of-use assets and lease liabilities were calculated using a weighted average discount rate of 0.94% for the year ended December 31, 2022, which impacts the valuation of these assets and liabilities.