What was the total value of Auntie Annes' cash and cash equivalents as of December 31, 2023?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
m throughout the audit.
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policie
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, the company's total cash and cash equivalents as of December 31, 2023, amounted to $22,662. This figure represents the readily available funds that Auntie Annes had on hand at that specific point in time. These funds are typically held in commercial bank accounts and money market mutual fund accounts.
For a prospective franchisee, understanding the franchisor's cash position can provide insights into the financial stability and liquidity of the company. A healthy cash balance suggests that Auntie Annes has sufficient resources to meet its short-term obligations and invest in future growth opportunities. However, it is important to note that this figure is just a snapshot in time and can fluctuate based on various factors, including sales performance, capital expenditures, and debt obligations.
In addition to cash and cash equivalents, Auntie Annes also holds restricted cash and cash equivalents, which are funds set aside for specific purposes, such as payments of principal, interest, and commitment fees related to the company's notes. As of December 31, 2023, the value of these restricted funds was $29,582. While these funds are not readily available for general use, they provide an additional layer of financial security for the company and its stakeholders.
Overall, the information provided in the FDD regarding Auntie Annes' cash position can be a valuable tool for prospective franchisees in assessing the financial health and stability of the company. However, it is important to consider this information in conjunction with other financial data and qualitative factors, such as the company's management team, brand reputation, and growth strategy, to make a well-informed investment decision.