What was the interest (income) expense - Ineffective portion for Aunt Millies Bakeries in 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------|-----------------|---------------|--------------|----------------| | Interest rate swap | 4,000,000 | 12/31/2025 | (29,490) | 4.47% | | Interest rate swap | 190,476 | 11/1/2024 | 575 | 2.57% | | Inter
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the interest (income) expense - ineffective portion for the year 2023 was an expense of $236,034. This figure represents a component of Aunt Millies Bakeries' financial performance related to interest, but specifically the portion deemed 'ineffective'.
For a prospective franchisee, understanding this number in isolation is difficult. It would be important to understand what "ineffective portion" refers to. Typically, interest expenses are costs incurred by a business for borrowing money, and these expenses can impact the overall profitability of the business.
To gain a clearer picture, a franchisee should compare this figure with Aunt Millies Bakeries' other financial data, such as total revenues, other expenses, and net income, to assess its relative significance. Additionally, understanding the reasons behind the 'ineffective portion' and its trends over time (comparing 2023 to 2024, for example) would provide valuable insights into the company's financial management and potential risks or opportunities.