For the year ended December 31, 2024, what was Monicals Pizza's operating lease expense?
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 operating lease expense for the year ending December 31, 2024, was $921,851. This figure represents the cost associated with operating leases held by Monicals Pizza during that fiscal year. Operating leases are typically for the use of property or equipment where Monicals Pizza does not assume the risks or rewards of ownership.
In addition to the operating lease expense, Monicals Pizza also incurred other lease-related expenses. For the year ending December 31, 2024, the amortization of right-of-use assets related to finance leases was $389,353, and the interest on lease liabilities was $34,125. The total lease expense for Monicals Pizza in 2024 amounted to $1,345,329, encompassing both operating and finance lease costs.
Prospective franchisees should consider these lease expenses as part of their overall financial planning. Understanding the breakdown between operating and finance leases, as well as the associated amortization and interest expenses, can provide a clearer picture of the long-term financial obligations related to leasing property and equipment for a Monicals Pizza franchise.