What was the weighted-average remaining lease term in years for Auntie Annes as of December 31, 2023?
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 remaining lease term was calculated to be 9.7 years as of December 31, 2023. This figure represents the average length of time left on the leases for Auntie Annes locations, taking into account the varying lease terms and their relative financial impact. In comparison, the weighted-average remaining lease term as of December 25, 2022, was 8.9 years.
For a prospective franchisee, this information indicates the typical duration of lease commitments that Auntie Annes has in place for its locations. Understanding the length of these leases is crucial for assessing long-term financial obligations and potential risks associated with lease renewals or terminations. A longer weighted-average lease term can provide stability but may also limit flexibility if a franchisee wishes to relocate or exit the business.
It's important to note that this is an average across all Auntie Annes locations, and individual franchise locations may have lease terms that differ significantly from this average. Franchisees should carefully review the specific lease terms for their intended location and consider how these terms align with their business plans and financial projections. Consulting with a real estate attorney or advisor is recommended to fully understand the implications of lease agreements.
This data point provides insight into the overall financial health and lease management strategies of Auntie Annes. Prospective franchisees can use this information to benchmark their own lease negotiations and assess the potential long-term viability of their investment.