What was the total value of right-of-use assets for Monicals Pizza in 2024?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------|-----------------| | 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 | $ 6,522,100 |
Below is a summary of expenses incurred pertaining to leases
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the total value of right-of-use assets for the company in 2024 was $5,473,897. This total is comprised of two categories: operating leases and finance leases. The value of operating leases was $4,675,079, while the value of finance leases was $798,818.
Right-of-use assets represent Monicals Pizza's rights to use certain assets for a specific period, typically under lease agreements. Operating leases are generally for shorter-term assets, while finance leases are longer-term and may include an option to purchase the asset at the end of the lease term. These assets are reported on the company's balance sheet and reflect the economic value of the company's leased properties and equipment.
For a prospective Monicals Pizza franchisee, understanding the breakdown of these right-of-use assets and the corresponding lease liabilities is crucial. It provides insight into the company's financial obligations and the extent to which it relies on leased assets for its operations. Reviewing these figures in comparison to previous years, such as 2023, can also reveal trends in the company's leasing strategies and overall financial health. Franchisees should consider these factors when assessing the financial stability and growth potential of Monicals Pizza.