What is the total of future lease payments for Aunt Millies Bakeries third parties in 2029?
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 | ||
|---|---|---|---|---|---|---|
| 2025 | $ | 1,731,497 | $ | 3,546,573 | $ | 5,278,070 |
| 2026 | 1,513,587 | 2,899,996 | 4,413,583 | |||
| 2027 | 1,158,988 | 2,120,538 | 3,279,526 | |||
| 2028 | 1,032,306 | 1,548,750 | 2,581,056 | |||
| 2029 | 974,241 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the total of future lease payments to third parties in 2029 is $1,088,403. This figure represents Aunt Millies Bakeries's financial obligations to entities that are not directly affiliated with the company, such as landlords or leasing companies. These payments are part of the overall financial commitments Aunt Millies Bakeries has undertaken for its operations.
For a prospective franchisee, understanding these lease obligations is crucial because it provides insight into the financial stability and long-term commitments of Aunt Millies Bakeries. Knowing the amounts due to third parties can help a franchisee assess the franchisor's financial health and its ability to support the franchise system. This information is particularly relevant when evaluating the potential risks and rewards of investing in an Aunt Millies Bakeries franchise.
It's important to note that these figures represent only the lease payments to third parties and do not include payments to related parties. The distinction between these two categories is important because related-party transactions may have different implications for the franchisee's assessment of the franchisor's financial condition. Therefore, a franchisee should consider both types of lease obligations when conducting their due diligence.
In summary, the $1,088,403 in lease payments to third parties for 2029 reflects a portion of Aunt Millies Bakeries's financial commitments. Prospective franchisees should carefully review these figures in the context of the company's overall financial statements to make an informed investment decision.