What was the weighted average discount rate for Aunt Millies Bakeries as of September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Weighted average remaining lease term (years) Weighted average discount rate | 6.86 | 9.72 |
| 3.74% | 4.26% |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the weighted average discount rate as of 2023 was 4.26%. This figure is relevant to understanding the financial performance and lease obligations of Aunt Millies Bakeries. The weighted average discount rate is used to determine the present value of future lease payments.
For a prospective franchisee, this rate is important because it affects how the company values its lease liabilities. A higher discount rate would result in a lower present value of lease liabilities, while a lower discount rate would result in a higher present value. This can impact the franchisee's financial statements and key financial ratios.
It is important to note that this rate is a weighted average, meaning it takes into account the different lease terms and rates applicable to Aunt Millies Bakeries' various lease agreements. The weighted average remaining lease term was 9.72 years. Understanding these factors can help a franchisee assess the financial health and stability of Aunt Millies Bakeries.