What was the amount of the lease liability, current, for Aunt Millies Bakeries as of September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
re as follows as of September 30, 2023:
| 2024 2025 2026 2027 | $ | 5,319,866 4,082,728 3,409,099 2,547,418 |
|---|---|---|
| 2028 | 2,233,131 | |
| Thereafter | 10.068.537 | |
| Total future lease payments Less: imputed interest | - | 27,660,780 (7,482,6 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, as of September 30, 2023, the company had operating lease liabilities to related parties of $930,679. The FDD also states that the ROU (Right-of-Use) asset related to these operating leases with related parties was valued at $945,590 on the same date.
These figures reflect Aunt Millie's Bakeries' lease obligations specifically to related parties, not the total lease liability. Related parties could include entities or individuals with close ties to the company, such as subsidiaries, affiliates, or key personnel. The lease payments are for leases with terms of more than one year.
A prospective franchisee should seek clarification from Aunt Millies Bakeries regarding the nature of these related-party leases, the specific terms and conditions, and how these arrangements might affect the franchisee's operations or financial obligations. Understanding the full scope of Aunt Millie's Bakeries' lease commitments, both with related and unrelated parties, is crucial for assessing the company's overall financial health and stability.