What was the amount of cash, cash equivalents, and restricted cash for Cicis at the beginning of 2023?
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 2023 was $5,540,074. This figure represents the total liquid assets Cicis had available at the start of the year, combining unrestricted cash with funds specifically designated for particular uses.
This number is significant for prospective franchisees as it provides insight into the financial health and stability of Cicis. A higher cash balance generally indicates a stronger financial position, which can be reassuring for those considering investing in a franchise. It suggests that Cicis has sufficient resources to manage its operations, invest in growth, and potentially support its franchisees.
It's important to note that this figure is just a snapshot in time and can fluctuate throughout the year. Factors such as revenue, expenses, and investments can all impact the cash balance. Additionally, the restricted cash portion may have specific limitations on its use, which could affect Cicis's flexibility in certain areas. Reviewing the complete financial statements and understanding the nature of the restricted funds would provide a more comprehensive understanding of Cicis's financial condition.
Prospective franchisees should consider this figure in conjunction with other financial metrics and information provided in the FDD to assess the overall financial viability of the Cicis franchise opportunity. Consulting with a financial advisor can also help in interpreting these figures and understanding their implications for your investment.