What was the interest rate used for Auntie Annes' receipts as of December 31, 2023?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, | December 25, | |
|---|---|---|
| For the fiscal years ended: | 2023 | 2022 |
| Expected life (years) | 5 | 5 |
| Interest rate | 3.95% | 4.32% |
| Volatility | 40.90% | 41.05% |
| Dividend yield | 0.00% | 0.00% |
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the interest rate used for receipts as of December 31, 2023, was 3.95%. This figure is relevant to understanding the financial assumptions and calculations used in Auntie Annes' financial statements. The interest rate impacts the valuation of certain assets and liabilities, particularly those related to long-term obligations.
For a prospective franchisee, this specific interest rate may not directly impact day-to-day operations. However, it provides insight into the financial strategies and performance of the overall Auntie Annes organization. Understanding these underlying financial metrics can help a franchisee assess the stability and potential profitability of the franchise system.
It's important to note that this interest rate is just one component of a complex financial picture. Franchisees should consider this information in conjunction with other financial data provided in the FDD, and consult with a financial advisor to fully understand the implications for their investment.