What was the total value of Auntie Annes' liabilities as of December 25, 2022?
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 Annes' 2024 Franchise Disclosure Document, the company's total liabilities as of December 25, 2022, were $1,481,723. This figure represents the sum of all current and long-term financial obligations that Auntie Annes owed to creditors, lenders, and other parties at that specific point in time.
Specifically, the liabilities are broken down into several categories. Current liabilities, which are obligations due within one year, totaled $128,183 and included items such as accounts payable, accrued expenses, income taxes payable, advertising fund liabilities, deferred revenue, and the current portions of operating lease liabilities and long-term debt. Long-term liabilities, representing obligations extending beyond one year, amounted to $1,353,540 and included long-term debt, long-term operating lease liabilities, long-term deferred tax liabilities, long-term deferred revenue, and long-term other liabilities.
For a prospective Auntie Annes franchisee, understanding the franchisor's financial liabilities is crucial. A high level of liabilities could indicate financial strain or a heavy reliance on debt financing, which might impact the franchisor's ability to support its franchisees or invest in the brand's future growth. While a certain level of debt is normal for most businesses, it's important to assess whether the liabilities are manageable in relation to the company's assets and revenue generation. Therefore, reviewing the complete financial statements and understanding the context behind these figures is an essential part of due diligence before investing in an Auntie Annes franchise.