What was the balance of the member's deficit for Cinnabon as of December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
s | 56,952 | 63,276 | | Long-term deferred tax liabilities | 64,182 | 74,271 | | Long-term deferred revenue | 58,571 | 55,362 | | Long-term other liabilities | 1,452 | 1,458 | | Total liabilities | 1,642,209 | 1,578,777 | | Commitments and contingencies (see Note 11) | | | | Member's deficit: | | | | Member's deficit | (759,874) | (696,181) | | Total member's deficit | (759,874) | (696,181) | | Total liabilities and member's deficit | $ 882,335 | $ 882,596 |
Consolidated statements of operations
| Deferrals due to cash received and other | 14,761 10,499 |
|---|---|
| Deferred revenue and Long-term deferred revenue $ 62,259 $ 58,511 | |
Consolidated statement
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the balance of the member's deficit as of December 29, 2024, was $(759,874). This represents the accumulated shortfall between the company's liabilities and its assets, essentially the negative equity held by the member.
A member's deficit in this context indicates that the liabilities of Cinnabon exceeded its assets. This can arise from various factors, including accumulated losses, distributions to the parent company, or other financial adjustments. The FDD also shows the member's deficit as of December 31, 2023, was $(696,181).
For a prospective franchisee, a significant member's deficit could raise concerns about the financial stability of Cinnabon. While the brand itself may be strong, a large deficit might indicate underlying financial challenges within the parent organization. It is important to note that this deficit does not directly impact the franchisee's operations, but it is a factor to consider when evaluating the overall health and stability of the franchise system. Prospective franchisees should seek clarification from Cinnabon regarding the reasons for the deficit and the plans to address it.