What was the depreciation and amortization expense for Aunt Millies Bakeries in 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------|-------------------------------------|---------------------------------------| | Net income (loss) | $ 14,199,697 | $ (5,256,940) | | Other comprehensive income (loss) Interest rate swap Change in benefit plans, net | | | | | (281,013) | 307,182 | | | 556,711 | (458,749) | | | 275,698 | (151,567) | | Comprehensive income (loss) | $ 14,475,395 | $ (5,408,507)
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2023 was $8,371,434. This figure reflects the accounting method of allocating the cost of tangible assets (depreciation) and intangible assets (amortization) over their useful lives. These are non-cash expenses, meaning they don't represent actual cash outflow during the year but rather the reduction in value of assets the company owns.
For a prospective Aunt Millies Bakeries franchisee, understanding depreciation and amortization is crucial for assessing the company's financial health. While franchisees do not directly pay these expenses, they reflect the capital investment Aunt Millies Bakeries has made in its infrastructure and assets. Higher depreciation and amortization expenses might indicate significant investments in equipment or intellectual property, which could translate to better operational efficiency or a stronger brand.
It's important to note that depreciation and amortization can be influenced by accounting choices, such as the method and useful lives assigned to assets. Therefore, it's advisable for potential franchisees to review Aunt Millies Bakeries's financial statements and consult with a financial advisor to fully understand the implications of these expenses. Comparing these figures with previous years and industry benchmarks can provide a more comprehensive view of the company's asset management and profitability.