What was the weighted-average discount rate for finance leases for The Standardx as of December 31, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Weighted-average remaining lease term in years | ||
| Operating leases (1) | 14 | 15 |
| Finance leases | 2 | 3 |
| Weighted-average discount rate | ||
| Operating leases | 3.8 % | 3.7 % |
| Finance leases | 2.0 % | 1.2 % |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the weighted-average discount rate for finance leases as of December 31, 2023, was 1.2%. This figure reflects the average rate used to discount future lease payments to their present value for finance leases held by The Standardx.
For a prospective franchisee, understanding the discount rate applied to finance leases can be important if they plan to enter into similar leasing arrangements. It provides insight into how The Standardx accounts for its lease obligations and can be used as a benchmark when evaluating their own potential lease agreements.
The weighted-average remaining lease term for these finance leases was 3 years as of the same date. This indicates the average duration of the finance leases held by The Standardx at that time. Both the discount rate and the lease term are key components in assessing the financial impact of lease obligations on The Standardx's balance sheet.