What was the accounts receivable, trade receivables amount for Cicis at December 31, 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| ------------- | ||
|---|---|---|
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 |
| $ 2,288,934 | $ 3,703,166 |
Accounts receivable: Accounts receivable consist primarily of accrued royalty fees and marketing contribution receivables, generally collected weekly in arrears, and vendor rebates. Unpaid accounts receivable with invoice dates over 30 days are non-interest bearing. All accounts receivable are ente
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the accounts receivable, trade receivables at December 31, 2022, were $186,610. Accounts receivable primarily consist of accrued royalty fees and marketing contribution receivables, generally collected weekly in arrears, and vendor rebates.
Accounts receivable with invoice dates over 30 days are non-interest bearing, and all accounts receivable are entered into on an unsecured basis. This means Cicis does not require collateral to secure these debts.
It is important for a prospective franchisee to understand how Cicis manages its accounts receivable, as this can impact the financial stability of the franchise system. Understanding the collection process and the potential for uncollectible accounts can help a franchisee assess the financial health of Cicis.