What is the gross carrying amount for Cinnabon tradenames, which are considered indefinite-lived intangibles?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
se agreements, which are typically 10-20 years, once the related SBRs are opened.
3 Assets Held for Lease
Assets held for lease, net consists of the following:
| December 29, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Assets held for lease | $ 4,794 | $ 4,831 |
| Accumulated depreciation | (4,533) | (4,469) |
| Assets held for lease, net | $ 261 | $ 362 |
Depreciation of assets held
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the gross carrying amount for its tradenames, classified as indefinite-lived intangibles, is $306,123.
Cinnabon does not amortize tradenames, meaning they do not systematically reduce the carrying value of the tradenames over time. Instead, Cinnabon evaluates these tradenames for impairment annually, or more frequently if circumstances suggest a potential decline in value. This evaluation can be qualitative or quantitative. A qualitative assessment involves determining if the fair value of the tradename exceeds its carrying value. If it's more likely than not that the fair value is higher, no further evaluation is needed. A quantitative assessment involves a direct comparison of the fair value and carrying value. If the carrying value exceeds the fair value, an impairment charge is recorded to reflect the difference.
The fair value is estimated using valuation methodologies, including discounted cash flow models, with operating assumptions consistent with past performance and current operating plans. These assumptions are subject to change based on economic and competitive conditions. The FDD states that no impairment losses were recorded for intangible assets during the fiscal years ended December 29, 2024, December 31, 2023, and December 25, 2022.