What is the present value of lease liabilities for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total 2025 $ 581 2026 593 2027 605 2028 206 Thereafter - Total lease payments 1,985 Less: imputed interest (186) | |
|---|---|
| Present value of lease liabilities | $ 1,799 |
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to the 2025 FDD, the present value of lease liabilities for a Sonesta Select Sonesta Essential franchise is $1,799. This figure represents the discounted value of future lease payments, taking into account imputed interest. The total lease payments are projected to be $581 in 2025, $593 in 2026, $605 in 2027, $206 in 2028, and $1,985 thereafter. The imputed interest is calculated to be $186.
For a prospective franchisee, understanding the present value of lease liabilities is crucial for assessing the overall financial commitment. It provides a more accurate picture of the actual cost of leasing, as it accounts for the time value of money. This information helps in making informed decisions about the affordability and financial viability of the franchise.
It's important to note that these figures are estimates and can vary based on specific lease terms and conditions. Franchisees should carefully review the lease agreements and consult with financial advisors to fully understand their lease obligations and potential financial implications. The FDD also lists other expenses related to maintaining the property, such as preventative maintenance, contract services, and exterior maintenance, which should be considered in conjunction with lease liabilities.