What is the total present value of sublease receipts for Cinnabon, as indicated in the provided table?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
real estate taxes, and contingent rent that is based upon a percentage of SBR sales.
The following table includes supplemental information related to leases:
| December 29, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Weighted-average remaining lease term (years) | 10.0 | 9.7 |
| Weighted-average discount rate | 4.8% | 4.4% |
| Operating lease assets, gross | $ 92,835 | $ 92,642 |
| Accumulated amortization | (30,159) | (23,107 |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the present value of sublease receipts is $ (11,846). This figure represents the total discounted value of future income Cinnabon expects to receive from subleasing properties over the lease terms. It is calculated by discounting the future minimum rental commitments, which total $ (11,846), to their present value.
For a prospective Cinnabon franchisee, this information provides insight into the financial obligations and potential revenue streams associated with leasing and subleasing properties. The negative value indicates that these sublease receipts effectively reduce Cinnabon's overall lease liabilities. Understanding these figures can help a franchisee assess the financial health and leasing strategies of the franchisor.
It's important to note that the present value calculation involves discounting future cash flows, which means the actual cash received in the future will be higher than the present value due to the time value of money. Additionally, these figures are based on estimates and assumptions, and actual sublease receipts may vary depending on market conditions and other factors. Franchisees should consider these factors when evaluating the financial implications of leasing and subleasing with Cinnabon.