What was the reported amount of Pearce Bespoke's right-of-use asset as of December 31, 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
nternal control related matters that we identified during the audit.
Wexford, Pennsylvania
May 24 2024
PEARCE BESPOKE FRANCHISING, LLC BALANCE SHEETS
ASSETS
| As of December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Current Assets: Cash Accounts receivable Deferred consulting fee | $ | 170,147 22,188 71,458 | $ | 46,811 - 2,500 |
| Total Current Assets | 263,793 | 49,311 | ||
| Deposits | 2,198 | - | ||
| Deferred Consulting Fee | 619,728 | 22,500 | ||
| Right-of-Use Asset - Operating Lease | 43,692 | - | ||
| Total Assets | $ | 929,411 | $ | 71,811 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIENCY) | ||||
| Current Liabilities: Accounts payable Related party payables Accrued payroll and payroll taxes Deferred franchise fee revenue Operating lease liability - current | $ | 80,525 692 23,621 129,693 22,822 | $ | 7,591 - 5,339 5,100 - |
| Total Current Liabilities | 257,353 | 18,030 | ||
| Deferred Franchise Fee Revenue | 1,123,022 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the right-of-use asset, related to an operating lease, was valued at $43,692 as of December 31, 2023. This asset reflects Pearce Bespoke's right to use a leased office space. The corresponding operating lease liability, net of current portions, was $21,020 as of the same date.
The right-of-use asset and lease liability stem from Pearce Bespoke's lease of office space, which commenced on November 21, 2023. The initial lease term had 22 months remaining as of January 1, 2024, extending through October 2025. Lease payments during the term range from $2,000 to $2,150 per month. These figures are important for prospective franchisees to understand Pearce Bespoke's financial obligations and how they account for leased assets.
For a potential Pearce Bespoke franchisee, understanding these figures is crucial for assessing the company's financial health and stability. The right-of-use asset and lease liability are standard accounting entries for leased properties, but their values can indicate the scale of Pearce Bespoke's operations and its long-term financial commitments. Reviewing these figures in conjunction with other financial statement items provides a more complete picture of the company's financial position.