What was the amount of related party receivable for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets: | |||
|---|---|---|---|
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 | |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 | |
| Accounts receivable, net: | |||
| Trade receivables | 290,921 | 325,874 | |
| Marketing fund, restricted | 2,395,119 | 2,537,488 | |
| Related party receivable | 695,717 | 79,530 | |
| Prepaid expenses and other current assets | 859,866 | 228,561 | |
| Total current assets | 6,530,557 | 6,874,619 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the related party receivable in 2023 was $79,530. This represents the amount due to Cicis from related parties, which could include entities with shared ownership or other affiliations.
For a prospective franchisee, understanding the nature and magnitude of related party receivables is important. It provides insight into the financial relationships Cicis has with other entities and how these relationships might impact the overall financial health of the company. A high related party receivable could indicate potential risks if these related parties are unable to meet their obligations.
It is also worth noting the changes in related party receivables from year to year. In this case, the related party receivable decreased from $833,117 in 2022 to $79,530 in 2023, and then increased to $695,717 in 2024. Monitoring these fluctuations can help a franchisee assess the stability and potential risks associated with these financial relationships. Franchisees should seek clarification from Cicis regarding the nature of these related party transactions and their potential impact on the franchise system.
Ultimately, a clear understanding of these figures aids potential franchisees in making informed decisions about investing in a Cicis franchise.