What was the operating lease cost for a Cinnabon franchise in 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
tes are reflected in the table above on their legal final maturity dates in 2027 and 2028, respectively.
Interest expense, net consists of the following:
| December 29, | December 31, |
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Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the operating lease costs for the fiscal year ended in 2024 were $15,590. This figure represents the rental expenses related to leases for Company SBRs (Small Business Restaurants) recorded to Company store, bakery, and restaurant operations expenses.
In addition to the operating lease costs, there were variable lease costs of $3,516 for the same period. These variable costs primarily include common area maintenance, real estate taxes, and contingent rent based on a percentage of SBR sales. The total operating lease costs, combining both the operating and variable components, amounted to $19,106 in 2024.
Prospective Cinnabon franchisees should consider these lease costs as part of their overall financial planning. Understanding the breakdown between fixed operating lease costs and variable costs can help in forecasting expenses and managing cash flow. It's also important to note that these figures reflect the company's overall lease expenses, and an individual franchisee's costs may vary depending on their specific location and lease terms. Reviewing the complete financial statements and consulting with a financial advisor is recommended to fully understand the potential lease obligations.