What was the variable lease cost for an Auntie Annes franchise as of December 25, 2022?
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 variable lease cost as of December 25, 2022, was $2,196. This figure represents the expenses associated with common area maintenance, real estate taxes, and contingent rent, which is typically based on a percentage of sales from satellite stores, bakeries, and restaurants (SBRs).
For a prospective Auntie Annes franchisee, understanding variable lease costs is crucial for accurate financial planning. These costs can fluctuate based on factors like property taxes and the sales performance of the store. Franchisees should carefully review their lease agreements to understand how these variable costs are calculated and what factors might cause them to increase or decrease.
It's important to note that these figures are specific to the company's financial reporting and may not directly translate to the variable lease costs a new franchisee will incur. Factors such as location, lease terms negotiated, and the specific structure of the franchise agreement can all influence these costs. Therefore, prospective franchisees should conduct thorough due diligence and consult with financial advisors to project their own potential variable lease expenses.