What was the gross value of Cinnabon's operating lease assets on December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
------|--------|--------------| | Operating lease costs | $ | 15,590 | $ 17,486 | | Variable lease cost | | 3,516 | 3,478 | | Total operating lease costs | $ | 19,106 | $ 20,964 |
Total operating lease costs include rental expense related to leases for Company SBRs recorded to Company store, bakery and restaurant operations expenses, leased properties that are subsequently subleased to franchisees rec
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the gross value of their operating lease assets on December 29, 2024, was $92,835. The accumulated amortization was ($30,159), resulting in a net operating lease asset value of $62,676.
For a prospective Cinnabon franchisee, operating leases typically relate to real estate for store locations and equipment. The gross value represents the total cost of these assets before accounting for depreciation. Amortization reflects the reduction in value of these assets over time.
Understanding the value and terms of Cinnabon's operating leases can provide insight into the company's financial obligations and long-term asset management. Reviewing these figures in comparison to previous years and industry benchmarks can help potential franchisees assess the financial health and stability of the Cinnabon franchise system.