What was the total amount of Cinnabon's long-term debt as of December 31, 2023?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
counts receivable, net of allowance for credit losses of | | | | $1,748 and $1,143 in 2024 and 2023, respectively | 44,272 | 37,049 | | Inventories | 1,128 | 978 | | Prepaid expenses and other current assets | 12,118 | 9,263 | | Advertising funds assets | 9,927 | 7,643 | | Intercompany receivables from Parent | 3,277 | 3,277 | | Total current assets | 115,063 | 110,454 | | Property, equipment, leasehold improvements and land, net | 71,417 | 71,199 | | Operating lease assets, net | 62,676 | 69,535 | | Goodwill | 122,714 | 122,714 | | Intangible assets, net | 496,479 | 495,389 | | Long-term other assets | 13,986 | 13,305 | | Total assets | $ 882,335 | $ 882,596 |
Consolidated balance sheets (cont'd)
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Liabilities and Member's Deficit | ||
| Current liabilities: | ||
| Accounts payable | $ 5,320 | $ 8,395 |
| Accrued expenses and other liabilities | 81,587 | 75,840 |
| Income taxes payable | 3,851 | 7,620 |
| Advertising funds liabilities | 8,418 | 8,942 |
| Current portion of deferred revenue | 3,688 | 3,149 |
| Curren |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company's long-term debt as of December 31, 2023, was $1,258,205. This figure represents the amount of debt that Cinnabon has outstanding, which is not due within the next year.
For a prospective franchisee, understanding the franchisor's debt level is crucial. A high level of long-term debt could indicate financial strain on the company, which might affect its ability to support franchisees or invest in the brand. Conversely, a manageable debt level suggests financial stability.
It is important to note that this long-term debt is part of the total liabilities, which also include other obligations such as accounts payable, accrued expenses, and deferred revenue. Reviewing the overall financial health of Cinnabon, including its assets, liabilities, and equity, provides a more comprehensive picture of its financial stability. Prospective franchisees should consult with a financial advisor to fully understand the implications of Cinnabon's financial statements.