What was the total accumulated depreciation and amortization for Cinnabon's property, equipment, and leasehold improvements as of December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
2023 | | | Weighted-average remaining lease term (years) | 10.0 | 9.7 | | | 2025 | $ 3,348 | |--------------------------------|--------------| | 2026 | 2,875 | | 2027 | 2,730 | | 2028 | 2,563 | | 2029 | 2,335 | | Thereafter | 18,589 | | Deferred revenue for open SBRs | $ 32,440 |
Deferred revenue of $29,819 relates to the unsatisfied future performance obligations associated with unopened SBRs and is not included within the table above. The Company anticipates recognizing revenue over the terms of the respective franchise agreements, which are typically 10-20 years, once the related SBRs are opened.
3 Property, Equipment, Leasehold Improvements and Land
Property, equipment, leasehold improvements and land, net consists of the following:
| | December 29, | | December 31,
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the total accumulated depreciation and amortization for property, equipment, and leasehold improvements was $106,754 as of December 29, 2024. In the previous year, December 31, 2023, the accumulated depreciation and amortization was $80,445. This figure reflects the cumulative amount of depreciation and amortization recognized on Cinnabon's assets over their useful lives up to that date.
For a prospective Cinnabon franchisee, understanding accumulated depreciation and amortization is crucial for assessing the net value of the company's assets. It provides insight into how much of the original cost of these assets has been expensed over time. This can be useful in evaluating the financial health and asset management practices of Cinnabon.
It's important to note that depreciation and amortization are non-cash expenses, meaning they don't represent actual cash outflows. However, they do reduce the company's taxable income, which can result in tax savings. The difference between the total property, equipment, and leasehold improvements ($170,676) and the accumulated depreciation ($106,754) gives the net value of these assets ($63,922) as of December 29, 2024. This net value is what would be reflected on the balance sheet.