What was the amount of deferred revenue for open SBRs for Cinnabon as of December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ear (9,152) (10,569) | | | Deferrals due to cash received and other 13,425 8 ,944 | | | Deferred revenue and Long-term deferred revenue $ 53,388 $ 49,115 | | | | | | | | | The Company expects to recognize revenue in the future related to performance obligations that are partially | | | satisfied at the end of the year: | | | For the fiscal years: | | | | | | 2025 $ 3 ,346 2026 2,580 2027 2,436 2028 2,276 2029 2,083 Thereafter 16,166 | 2,580 2,436 2,276 2,083 16,166 | | Deferred revenue for open SBRs $ 28,887 | | | | | | 2025 | $ 3,346 | |--------------------------------|--------------| | 2026
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the deferred revenue for open SBRs (Small Business Restaurants) as of December 29, 2024, was $28,887. This figure represents revenue that Cinnabon has received but not yet recognized as earned, specifically related to franchise agreements for open Cinnabon locations. This deferred revenue will be recognized over time as Cinnabon fulfills its obligations under these franchise agreements.
For a prospective Cinnabon franchisee, understanding deferred revenue is crucial because it reflects the financial relationship between the franchisee and franchisor. The franchisee pays fees upfront, and Cinnabon recognizes this revenue gradually as they provide ongoing support and services. The $28,887 indicates the amount of future revenue Cinnabon expects to recognize from its existing open franchise locations.
It's important to note that this figure pertains only to open SBRs. Cinnabon also has deferred revenue associated with unopened SBRs, which is accounted for separately. Reviewing both figures provides a comprehensive view of Cinnabon's financial obligations and future revenue streams. Franchisees should also inquire about the specific terms under which deferred revenue is recognized to fully understand the financial implications for both parties.