What were the total operating lease costs for a Cinnabon franchise in 2023?
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 the 2025 Cinnabon Franchise Disclosure Document, the total operating lease costs for the fiscal year ended in 2023 were $20,964. This figure encompasses rental expenses related to leases for Company SBRs (Satellite Bakery Restaurants) recorded to Company store, bakery, and restaurant operations expenses. It also includes leased properties that are subsequently subleased to franchisees, recorded under Franchise and other rental expenses, as well as leases for corporate offices recorded under Selling, general, and administrative expenses.
Understanding these costs is crucial for prospective Cinnabon franchisees as it provides insight into the financial obligations associated with leasing a location. Operating lease costs represent a significant overhead expense, and knowing the historical figures can help franchisees forecast their potential expenses. It is important to note that these costs can vary depending on the specific location and lease terms negotiated.
In addition to operating lease costs, Cinnabon franchisees should also be aware of variable lease costs, which include common area maintenance, real estate taxes, and contingent rent based on a percentage of SBR sales. For the fiscal year ended in 2023, variable lease costs amounted to $3,478. These variable costs can fluctuate based on factors such as property taxes and sales performance, adding another layer of complexity to financial planning. Franchisees should carefully review their lease agreements and consider these variable costs when projecting their overall expenses.
It's important to note that the figures provided in the FDD represent the company's overall operating lease costs and may not directly reflect the specific lease costs a franchisee will incur. Individual lease terms and conditions can vary significantly based on location, negotiation, and other factors. Therefore, prospective Cinnabon franchisees should conduct thorough due diligence and consult with financial advisors to accurately assess their potential lease obligations.