What was the total amount of long-term debt for Auntie Annes in the later year presented in this table?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Atlanta, Georgia March 11, 2024
Consolidated balance sheets
(In thousands)
| December 31, 2023 | December 25, 2022 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 22,662 | $ 31,196 |
| Restricted cash and cash equivalents - securitization | 29,582 | 27,456 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,143 and $1,383 in 2023 and 2022, respectively | 37,049 | 31,935 |
| Inventories | 978 | 1,116 |
| Prepaid expenses and other current assets | 9,263 | 8,720 |
| Advertising funds assets | 7,643 | 6,972 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 110,454 | 110,672 |
| Property, equipment, leasehold improvements and land, net | 71,199 | 59,734 |
| Operating lease assets, net | 69,535 | 75,786 |
| Goodwill |
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the long-term debt for the company as of December 31, 2023, was $1,258,205. The FDD also provides the long-term debt as of December 25, 2022, which was $1,151,023. This indicates an increase in long-term debt from 2022 to 2023.
This figure is important for prospective franchisees as it provides insight into the financial leverage of Auntie Anne's franchisor. A significant amount of long-term debt could indicate higher financial risk for the franchisor, which may indirectly affect franchisees through potential instability or changes in strategic direction. Franchisees should consider this in conjunction with other financial metrics to assess the overall financial health of the franchisor.
Understanding the franchisor's debt obligations can help a franchisee evaluate the financial stability and potential risks associated with investing in an Auntie Anne's franchise. While debt isn't inherently negative, its size and management can impact the franchisor's ability to support its franchisees and invest in the brand's future growth. Therefore, reviewing these figures in the FDD is a crucial part of due diligence.