What was the cash distribution paid to Parent's shareholders for Cinnabon as of December 31, 2023?
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 cash distribution paid to the Parent's shareholders as of December 31, 2023, was $(162,487). This figure represents a reduction in the member's deficit.
This distribution is part of the broader financial activities of Cinnabon's parent company and reflects how profits are allocated. For a prospective franchisee, this indicates the financial relationship between Cinnabon and its parent entity, including how profits are distributed to shareholders. It's a common practice for franchise systems owned by larger entities to distribute earnings to their parent companies.
Understanding these distributions can help a franchisee assess the financial stability and priorities of the parent company. While a cash distribution to shareholders is a normal business activity, franchisees might want to understand the frequency and magnitude of these distributions to ensure that Cinnabon is adequately capitalized and supported by its parent company. Significant or frequent distributions could potentially impact the resources available for brand development, franchisee support, and overall system growth. Therefore, it's prudent for potential franchisees to discuss these financial dynamics with Cinnabon during their due diligence process.