What is the present value of lease liabilities for Aunt Millies Bakeries related to third parties?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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The following table represents the weighted-average remaining lease term and discount rate as of September 30, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Weighted average remaining lease term (years) Weighted average discount rate | 6.86 | 9.72 |
| 3.74% | 4.26% |
Future undiscounted lease payments for the Corporation's lease liabilities are as follows as of September 30, 2024:
| R | elated Parties | 9 | Third Parties | Total |
|---|
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company has lease liabilities to both related parties and third parties. The present value of lease liabilities to third parties is detailed in a table outlining future lease payments.
In 2025, the lease liabilities to third parties amount to $3,546,573. These liabilities decrease over the following years: $2,899,996 in 2026, $2,120,538 in 2027, $1,548,750 in 2028, and $1,088,403 in 2029. After 2029, the remaining lease liabilities to third parties total $5,412.
The total future lease payments to third parties amount to $11,209,672, but after deducting imputed interest of $779,409, the present value of these lease liabilities is not explicitly stated in this excerpt. A prospective franchisee should request clarification from Aunt Millies Bakeries regarding the total present value of lease liabilities to third parties after accounting for imputed interest.