What is the total present value of lease liabilities for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
st on finance lease liabilities is reflected on the consolidated statements of operations in interest expense.
The following table represents the weighted-average remaining lease term and discount rate as of September 30, 2023:
| Weighted average remaining lease term (years) | 9.72 |
|---|---|
| Weighted average discount rate | 4.26% |
Future undiscounted lease payments for the Corporation's operating and financing lease liabilities
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the present value of lease liabilities is detailed in Item 23. The document states that the total present value of lease liabilities is $20,178,146, after accounting for imputed interest and current lease liabilities. After subtracting current lease liabilities of $4,481,275, the non-current lease liabilities amount to $15,696,871.
This information is crucial for prospective franchisees as it provides insight into the financial obligations Aunt Millies Bakeries has concerning its leases. Understanding the present value of lease liabilities helps potential franchisees assess the overall financial health and stability of the company. It also allows them to compare these liabilities with the company's assets and revenue to gauge its ability to meet its long-term obligations.
Furthermore, the FDD provides a breakdown of these lease liabilities over several years, which can help franchisees understand the timing and magnitude of these obligations. This information, combined with other financial disclosures in the FDD, enables a more comprehensive evaluation of the financial risks and opportunities associated with investing in an Aunt Millies Bakeries franchise. Franchisees should consult with financial advisors to fully understand the implications of these lease liabilities on the company's financial performance and future prospects.