What was the amount of deferred franchise fees, less current portion, for Cicis in 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| Current portion of deferred franchise fees | 73,092 | 42,792 | ||
| Deferred franchise fees, less current portion | 337,871 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the amount of deferred franchise fees, less the current portion, was $337,871 in 2024. This figure represents franchise fees that Cicis has collected but not yet recognized as revenue on its income statement. These fees are typically associated with future services or obligations that Cicis owes to its franchisees.
For a prospective Cicis franchisee, this deferred revenue indicates the financial obligations Cicis has to its existing franchisees. It reflects the franchisor's commitment to providing ongoing support and services in exchange for the initial franchise fees received. The deferred revenue is recognized over time as Cicis fulfills these obligations.
Understanding the deferred franchise fees can provide insight into the sustainability of Cicis's revenue streams and its relationship with franchisees. A significant deferred revenue balance suggests a healthy pipeline of future revenue recognition, assuming Cicis continues to meet its obligations to franchisees. This metric is useful for potential franchisees to gauge the financial stability and long-term prospects of the Cicis franchise system.