What was the total amount of Cinnabon's assets held for lease, net, as of December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
nting 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 21, 2025
Consolidated balance sheets
|
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the total amount of assets held for lease, net, as of December 29, 2024, was $261. This figure represents the value of assets that Cinnabon owns and leases out, primarily satellite SBRs (Small Business Restaurants) leased to franchisees under month-to-month operating lease agreements. The net value takes into account accumulated depreciation of these assets.
For a prospective Cinnabon franchisee, this indicates that Cinnabon engages in leasing arrangements for certain locations, particularly smaller satellite units. The assets held for lease are largely comprised of satellite SBRs that the Company leases to certain franchisees under month-to-month operating lease agreements. This could present an opportunity for franchisees to lease a location from Cinnabon, potentially reducing the initial investment needed to start a franchise.
The FDD also provides a comparative figure for the previous year, December 31, 2023, when the assets held for lease, net, were valued at $362. This shows a decrease in the net value of these assets year-over-year. The assets held for lease decreased by $101 from 2023 to 2024.
It's important for potential franchisees to understand the terms and conditions of these lease agreements, including the monthly lease rates, responsibilities for maintenance and repairs, and any restrictions on the use of the leased premises. Further due diligence would involve inquiring about the availability of these leased locations and whether they align with the franchisee's business goals and financial capabilities.