How often does Cinnabon evaluate goodwill and tradenames for impairment?

According to Cinnabon's 2025 Franchise Disclosure Document, the company evaluates goodwill and tradenames for impairment annually at year-end. This evaluation can be either a qualitative or quantitative assessment. Additionally, Cinnabon may perform these evaluations more frequently if circumstances suggest a potential impairment.

The purpose of these evaluations is to determine if the recorded value of these intangible assets on Cinnabon's balance sheet still accurately reflects their fair market value. Goodwill represents the value of Cinnabon's brand reputation and customer relationships, while tradenames are the protected names and logos associated with the brand. If the evaluation indicates that the fair value of these assets has fallen below their carrying value, Cinnabon must record an impairment charge to reduce their book value.

For a prospective Cinnabon franchisee, this indicates that the franchisor is actively monitoring the value of its brand and trademarks. While impairment charges don't directly impact the day-to-day operations of a franchise, they can signal broader financial or brand-related challenges within the company. It is worth noting that no impairment losses were recorded for goodwill, tradenames, or amortizable intangible assets during the fiscal years ended December 29, 2024 and December 31, 2023.