What was the net value of Auntie Annes' assets held for lease as of December 25, 2022?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| December | December 25, | |||
|---|---|---|---|---|
| 20 | 23 | 2022 | ||
| Assets held for lease | $ 4,8 | 31 | $ 4,611 | |
| Accumulated depreciation | (4,4 | 69) | (4,280) | |
| Assets held for lease, net | $ 30 | 52 | $ 331 |
[Item 23: RECEIPTS]
Depreciation of assets held for lease totaled $189, $215, and $370 for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021, respectively.
[Item 23: RECEIPTS]
Depreciation and amortization of property, equipment and leasehold improvements totaled $14,212 and $6,774 for the fiscal years ended December 31, 2023 and December 25, 2022, respectively. Assets held for lease is largely comprised of satellite SBRs that the Company leases to certain franchisees under month-to-month operating lease agreements.
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, the net value of assets held for lease as of December 25, 2022, was $331. The assets held for lease before accumulated depreciation were valued at $4,611, with accumulated depreciation of $4,280.
These assets held for lease are largely comprised of satellite SBRs (Small Business Restaurants) that Auntie Annes leases to certain franchisees under month-to-month operating lease agreements. This arrangement suggests that Auntie Annes may provide franchisees with the option to lease rather than purchase certain business locations or equipment.
The depreciation of assets held for lease was $215 for the fiscal year ended December 25, 2022. This depreciation expense reflects the reduction in value of these leased assets over time, which is an important factor in the overall financial management of Auntie Annes' leasing operations.