What was the amount of cash, cash equivalents, and restricted cash Cicis had at the beginning of 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | Net income | 9,407,023 | | Balance, December 31, 2022 | 3,543,007 | | Distributions | (8,300,000) | | Net income | 5,859,705 | | | | | Balance, December 31, 2023 | $ 1,102,712 |
Combined Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | $ 5,859,705 | $ 9,407,023 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Amortization | 13,149 | 13,149 |
| Changes in operating assets and liabilities: | ||
| Trade receivables | 186,610 | (73,448) |
| Marketing fund, restricted | (1,307,025) | 1,045,443 |
| Related party receivable | 753,587 | (502,090) |
| Prepaid expenses and other current assets | 41,682 | 532,467 |
| Other receivables | (2,952) | 226,453 |
| Accounts payable | 305,641 | 90,785 |
| Accounts payable—marketing fund, restricted | 182,889 | (636,450) |
| Accrued expenses and other current liabilities | (754,380) | 668,395 |
| Deferred franchise fees | 233,291 | 325,663 |
| Related party payable | 427,267 | (49,523) |
| Marketing fund liabilities, restricted | 1,407,044 | (2,623,924) |
| Other noncurrent liabilities | (789,083) | (775,153) |
| Net cash provided by operating activities | 6,557,425 | 7,648,790 |
| Cash flows from investing activities: | ||
| Website in development | (94,333) | (100,000) |
| Net cash used in investing activities | (94,333) | (100,000) |
| Cash flows from financing activities: | ||
| Distributions to members | (8,300,000) | (7,277,500) |
| Net cash used in financing activities | (8,300,000) | (7,277,500) |
| Net (decrease) increase in cash, cash equivalents | ||
| and restricted cash | (1,836,908) | 271,290 |
| Cash, cash equivalents and restricted cash: | ||
| Beginning of year |
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 amount of cash, cash equivalents, and restricted cash at the beginning of 2022 was $5,268,784. This figure represents the total liquid assets Cicis had available at the start of that year, including readily available cash and any funds specifically designated for particular uses.
This information is crucial for prospective franchisees as it provides insight into the financial health and stability of Cicis. A higher cash balance generally indicates a stronger ability to meet financial obligations, invest in growth opportunities, and support franchisees during challenging times. Conversely, a lower cash balance might raise concerns about the company's financial flexibility and potential risks.
It is important to note that this figure represents only a snapshot in time. The actual cash position of Cicis may fluctuate throughout the year due to various factors such as revenue, expenses, investments, and financing activities. Therefore, prospective franchisees should also consider other financial metrics and trends to gain a comprehensive understanding of Cicis's financial performance.