What were the total operating lease cash payments made by My Salon Suite in 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating leases Finance leases | 14 years 5 years | |
|---|---|---|
| Weighted | ||
| Average | ||
| Discount | ||
| Rate | ||
| Operating leases Finance leases | 2.8% 4.2% | |
| The | ||
| components | ||
| of | ||
| lease | ||
| costs | ||
| are | ||
| as | ||
| follows: | ||
| Operating | $ 5,426,099 | |
| lease | ||
| cost | ||
| Finance | ||
| lease | ||
| cost: | ||
| Amortization of right-of-use assets Interest on lease liabilities | $ 34,320 2,220 | |
| Total | $ 36,540 | |
| finance | ||
| lease | ||
| costs |
Notes to Consolidated Financial Statements
Operating lease costs are recorded in selling, general, and administrative costs and expenses on the Consolidated Statements of Income. For financing leases, the amortization of right-of-use assets are recorded in depreciation and amortization expense, and interest on lease liabilities are netted with Interest income on the Consolidate
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the total operating lease cash payments made in 2023 were $4,436,949. This figure reflects the actual cash outflow related to the leases held by My Salon Suite for its locations. For a prospective franchisee, this indicates the scale of My Salon Suite's leasing obligations and provides insight into the company's financial management of its real estate portfolio.
Operating lease costs are recorded as part of the selling, general, and administrative costs and expenses on My Salon Suite's Consolidated Statements of Income. In contrast, for financing leases, the amortization of right-of-use assets is included in depreciation and amortization expense, while interest on lease liabilities is netted with interest income. This distinction in accounting treatment highlights how My Salon Suite differentiates between its operating and financing lease obligations.
In 2022, My Salon Suite's total operating lease cash payments amounted to $4,410,805. The increase to $4,436,949 in 2023 suggests a slight expansion or renegotiation of lease terms during that year. Franchisees should be aware of these figures as they reflect the financial health and operational scale of My Salon Suite, which could indirectly affect the support and resources available to them.