What was the net value of Cinnabon's accounts receivable, after accounting for credit losses, in 2024?
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 the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Atlanta, Georgia March 7, 2025
Consolidated balance sheets
| December 29, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 |
| Accounts receivable, net of allowance for |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the net accounts receivable, after deducting the allowance for credit losses, was $44,272 in 2024. The allowance for credit losses that was deducted from the gross accounts receivable to arrive at this net figure was $1,748 in 2024. In the previous year, 2023, the net accounts receivable was $37,049 after deducting an allowance for credit losses of $1,143.
Accounts receivable primarily consist of amounts owed to Cinnabon by franchisees, vendors, and licensees. The health of these receivables is closely tied to the overall performance of Cinnabon's brand and the broader quick-service restaurant industry. Cinnabon manages the risk of credit losses by having a large number of franchisees and licensees, and by the short-term nature of the receivables.
For a prospective franchisee, this information provides insight into Cinnabon's financial management and the credit risk associated with its receivables. A higher net accounts receivable balance from one year to the next could indicate growth in sales to franchisees, vendors, and licensees. However, it's also important to consider the allowance for credit losses, as a significant increase in this allowance could signal potential concerns about the collectibility of outstanding receivables. Reviewing these figures over several years can help a franchisee understand trends and assess the financial stability of Cinnabon's revenue streams.