What were the total operating lease costs for an Auntie Annes franchise as of December 31, 2023?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
on Long-Term Debt**
The annual principal payment requirements for Long-term debt based on the anticipated repayment dates of the Senior Notes, subject to certain financial conditions set forth in the Indenture, are as follows:
| 2024 | $ 9,950 | |------------------------------------
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the total operating lease costs for the fiscal year ended December 31, 2023, were $20,964. This figure includes both operating lease costs of $17,486 and variable lease costs of $3,478.
For a prospective Auntie Annes franchisee, understanding these lease costs is crucial. Operating leases typically cover the rental of the store location, while variable lease costs might be tied to factors like sales performance. These costs represent a significant operational expense that will impact the profitability of the franchise.
It's also useful to compare these figures with the previous year. For the fiscal year ended December 25, 2022, the total operating lease costs were $21,276, comprising operating lease costs of $19,080 and variable lease costs of $2,196. The slight decrease in total operating lease costs from 2022 to 2023 could be due to various factors, such as renegotiated lease terms or changes in variable lease components.
Franchisees should carefully review their specific lease agreements and understand how both the fixed and variable components of their lease costs are determined. This will allow them to accurately forecast their expenses and manage their business effectively.