As of December 29, 2024, what was the reported amount of cash and cash equivalents for Cinnabon?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
licies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about th
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company reported cash and cash equivalents of $11,594 as of December 29, 2024. This figure represents the amount of readily available cash and short-term investments that Cinnabon has on hand to meet its immediate obligations. For comparison, the FDD also shows that on December 31, 2023, Cinnabon had $22,662 in cash and cash equivalents.
In addition to standard cash and cash equivalents, Cinnabon also reports "restricted cash and cash equivalents - securitization," which amounted to $32,747 as of December 29, 2024. These funds are held by a trustee and are specifically earmarked for payments related to the company's notes, including principal, interest, and commitment fees. They also include cash collections from securitized franchising or licensing activities held in special-purpose, bankruptcy-remote subsidiaries. These restricted funds cannot be used for general operating expenses.
It is important for a prospective Cinnabon franchisee to understand the distinction between these different types of cash holdings. While the unrestricted cash and cash equivalents reflect the company's general financial health and liquidity, the restricted funds are dedicated to specific obligations and are not available for day-to-day operations. Reviewing these figures in the context of Cinnabon's overall financial statements can provide valuable insights into the company's financial management and stability.