What was the amount of revenue recognized by Cinnabon during the fiscal year ended December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
tements from being misleading. Management evaluated events occurring subsequent to December 29, 2024 through March 7, 2025, the date these consolidated financial statements were available for issuance, and determined that no subsequent event required recognition or disclosure.
2 Revenue
The Company recognizes franchise revenues, Company SBR revenues, franchise and other rental revenues, and advertising funds revenues as the related performance obligations are satisfied.
The Company generally recognizes revenue associated with franchise and development fees of open SBRs over time. The Company's other revenue streams are generally recognized at a point in time.
Franchise revenues are disaggregated by the timing of recognition as follows:
| December 29, | December 31, | |
|---|---|---|
| For the fiscal years ended: | 2024 | 2023 |
| Franchise revenues satisfied over time | $ 4,398 | $ 5,600 |
| Franchise revenues satisfied at a point in time | 344,654 | 331,846 |
| Franchise revenues | $ 349,052 | $ 337,446 |
Changes in deferred franchise and development fees are as follows:
| December 29, | December 31, | |
|---|---|---|
| For the fiscal years ended: | 2024 | 2023 |
| Deferred revenue at the beginning of the period | $ 58,511 | $ 60,270 |
| Revenue recognized during the period | (11,013) | (12,258) |
| Deferrals due to cash received and other | 14,761 | 10,499 |
| Deferred revenue and Long-term deferred revenue | $ 62,259 | $ 58,511 |
The Company expects to recognize revenue in the future related to performance obligations that are partially satisfied at the end of the year:
| | December 29, | | December 31, |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, several revenue streams were recognized during the fiscal year ended December 29, 2024. Franchise revenues satisfied over time amounted to $4,398, while franchise revenues satisfied at a point in time totaled $344,654, bringing the total franchise revenues to $349,052. Additionally, operating lease income was $6,469, and variable lease income was $121, resulting in franchise and other rental revenues of $6,590. There was also a deduction of $9,152 related to revenue recognized during the year from deferred franchise and development fees.
In addition to franchise and rental revenues, Cinnabon also recognized revenue related to deferred amounts. Specifically, the revenue recognized during the period from deferred revenue at the beginning of the period was a negative $11,013. This indicates a reduction in deferred revenue being recognized as earned revenue during that time.
In summary, Cinnabon's revenue streams include franchise revenues recognized over time and at a specific point, rental income from operating and variable leases, and the recognition of deferred revenue. These different categories provide a comprehensive view of how Cinnabon generates revenue through its franchising operations and related activities. A prospective franchisee should carefully consider these revenue streams and how they might impact their own financial performance.