What was the total lease cost for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years ending December 31, | Operating leases | Finance leases | Total |
|---|---|---|---|
| 2025 | $ 6,132 | $ 6,692 | $ 12,823 |
| 2026 | 5,057 | 6,941 | 11,998 |
| 2027 | 3,423 | 2,854 | 6,277 |
| 2028 | 2,902 | 1,134 | 4,035 |
| 2029 | 2,029 | 210 | 2,240 |
| Thereafter | 4,089 | - | 4,089 |
| Total lease payments | $ 23,631 | $ 17,831 $ | 41,462 |
| Less: Interest | 2,591 | 1,612 | 4,203 |
| Total lease liabilities | $ 21,040 | $ 16,219 $ | 37,258 |
| Less: Current lease liabilities | 5,401 | 5,941 | 11,342 |
| Non-current lease liabilities | $ 15,639 | $ 10,278 | $ 25,917 |
Rent expense for operating lease
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total lease cost for the year ended December 31, 2023, was $13,926. This figure includes finance lease costs and variable lease costs in addition to rent expenses for operating leases.
For a prospective franchisee, understanding the components of this total lease cost is crucial. Operating lease costs, variable lease costs, and finance lease costs each represent different types of leasing arrangements that Precision Door Service utilizes. Knowing the breakdown can help a franchisee anticipate similar expenses in their own operations, although their specific costs will vary based on location, lease terms, and other factors.
It's also worth noting that Precision Door Service's rent expense for operating leases specifically was $7,855 for the same period. This indicates that a significant portion of the total lease cost is attributed to standard operating leases, while the remainder covers finance and variable lease costs. Franchisees should inquire about the types of leases they might encounter and how these costs are typically managed within the Precision Door Service franchise system.