What is the total minimum lease payments due by The Standardx in 2025?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating leases Year Ending December 31, (1) | Finance leases |
|---|---|
| 2025 $ 41 | $ 2 |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company has minimum lease payments due in 2025 for both operating and finance leases. The minimum lease payment for operating leases is $41 and the minimum lease payment for finance leases is $2. The total minimum lease payments due by The Standardx in 2025 is $43.
It is important to note that these figures represent only the minimum lease payments. The Standardx's operating leases may include terms such as fixed minimum lease payments, variable lease payments based on a percentage of the hotel's profitability measure, lease payments equal to the greater of a fixed minimum or variable amount based on a percentage of the hotel's profitability measure, lease payments adjusted for changes in an index or market value, or variable lease payments based on a percentage split of the total gross revenues. Future lease payments that are contingent are not included in the measurement of the operating lease liability or in the future maturities table.
Prospective franchisees should be aware of these lease obligations as they represent a significant financial commitment. Understanding the terms of the leases, including any variable payment components, is crucial for accurate financial planning. Franchisees should also inquire about any potential sublease receipts that could offset these lease payments.