What was the reported amount for long-term lease liability for Aunt Millies Bakeries in 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
progress | 6,691,112 | 3,102,063 | | Land | 2,446,173 | 2,471,173 | | | 39,539,220 | 38,210,298 | | Notes receivable – distributor routes, less current maturities, net | 4,862,381 | 3,256,368 | | Right of use assets | 20,264,988 | 20,972,254 | | Other assets | 769,267 | 854,588 | | Noncurrent assets held for sale | 25,000 | • 447.070.000 | | Total assets | $ 126,654,714 | $ 117,073,938 |
PERFECTION BAKERIES, INC. CONSOLIDATED BALANCE SHEETS September 30, 2024 and 2023
| LIABILITIES | 2024 | 2023 | ||
|---|---|---|---|---|
| Current liabilities | ||||
| Current maturities of long-term obligations | $ | 1,704,850 | $ | 1,677,001 |
| Subordinated revolving credit facility | 1,973,937 | 2,740,852 | ||
| Current portion of pension plan withdrawal liability | 578,437 | 541,636 | ||
| Accounts payable | 21,890,353 | 24,501,524 | ||
| Accrued expenses | 26,086,770 | 22,040,792 | ||
| Lease liability, current | 4,691,689 | 4,481,275 | ||
| Deferred revenue | 835,063 | _ | 864,603 | |
| Total current liabilities | 57,761,099 | 56,847,683 | ||
| Long-term obligations, less current maturities | 3,313,680 | 6,414,044 | ||
| Deferred revenue, long-term | 1,263,177 | 534,139 | ||
| Accrued postretirement life and health benefits and pension plan | 4,079,343 | 3,698,115 | ||
| Pension plan withdrawal liability | 11,168,457 | 11,746,895 | ||
| Lease liability, long-term | 14,781,089 | 15,696,871 | ||
| Other liabilities | 7,429,566 | 6,289,280 | ||
| Total liabilities | 99,796,411 , | 101,227 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the long-term lease liability reported for 2023 was $15,696,871. This figure represents the company's obligation for leases extending beyond one year, reflecting their financial commitments related to leased properties or equipment. This liability is a significant component of Aunt Millies Bakeries's overall financial structure.
For a prospective franchisee, understanding the lease liabilities of the franchisor is crucial. It provides insight into the financial health and stability of Aunt Millies Bakeries. High lease liabilities could indicate substantial fixed costs, which might affect the franchisor's ability to support franchisees during economic downturns or invest in new initiatives. Conversely, well-managed lease obligations can demonstrate effective financial planning and resource allocation.
It is important to note that this figure represents the lease liability for Aunt Millies Bakeries itself, not the potential lease obligations a franchisee might incur for their own business location. A franchisee will likely have separate lease agreements and associated liabilities depending on the terms they negotiate for their specific site. Reviewing the franchisor's financial statements provides a broader context for assessing the financial stability of the overall organization, which indirectly impacts franchisees.
Therefore, while this specific number doesn't directly translate to a franchisee's costs, it's a valuable data point for assessing the financial health of Aunt Millies Bakeries. Potential franchisees should discuss the implications of these liabilities with the franchisor and seek professional financial advice to fully understand the risks and opportunities associated with investing in an Aunt Millies Bakeries franchise.