What was the weighted-average discount rate for Auntie Annes as of December 25, 2022?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| , | ||
|---|---|---|
| For the fiscal years ended: | 2023 | 2022 |
| Credit facilities | $ 74,340 | $ 54,518 |
| Amortization of debt discount and issuance costs | 2,638 | 2,885 |
| Interest income | (2,067) | (1,990) |
| Other | - | (677) |
| Interest expense, net | $ 74,911 | $ 54,736 |
6 Leases
Certain Company offices and SBRs
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the weighted-average discount rate as of December 25, 2022, was 3.7%. This rate is used in calculations related to the company's financial obligations and assets. The weighted-average discount rate reflects the average rate used to discount future lease payments to their present value, providing a measure of the time value of money in the context of Auntie Annes's lease obligations.
This figure is important for understanding how Auntie Annes values its lease-related assets and liabilities. A lower discount rate generally results in a higher present value of future lease payments, which can increase the reported value of lease assets and liabilities on the balance sheet. Conversely, a higher discount rate would decrease the present value. The FDD also lists the weighted-average remaining lease term as 8.9 years as of December 25, 2022.
Prospective franchisees should be aware of these rates and terms as they provide insight into Auntie Annes's financial strategies and obligations related to its leases. Understanding these financial metrics can help franchisees assess the overall financial health and stability of the company. It's also worth noting that the weighted-average discount rate as of December 31, 2023, was 4.4%, indicating a change in the rate year-over-year.