What was the weighted-average remaining lease term in years for Cinnabon as of December 31, 2023?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
------|--------|--------------| | Operating lease costs | $ | 15,590 | $ 17,486 | | Variable lease cost | | 3,516 | 3,478 | | Total operating lease costs | $ | 19,106 | $ 20,964 |
Total operating lease costs include rental expense related to leases for Company SBRs recorded to Company store, bakery
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the weighted-average remaining lease term was 9.7 years as of December 31, 2023. This figure represents the average length of time left on Cinnabon's existing leases, weighted by factors such as lease size or rental amount.
For a prospective Cinnabon franchisee, this information provides insight into the brand's real estate strategy and lease management. A longer weighted-average lease term can indicate stability in location and potentially lower risk of needing to relocate in the near future. It also suggests that Cinnabon has secured favorable long-term lease agreements.
Understanding the weighted-average remaining lease term can help a franchisee assess the long-term viability of Cinnabon locations and the potential for continued revenue generation from those sites. It's a key factor to consider when evaluating the overall financial health and stability of the franchise system.