What was the change in Cicis' marketing fund, restricted, in 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
s | (2,889,567) | | Net income | 4,210,079 | | | | | Balance, December 31, 2024 | $ 2,423,224 |
Combined Statements of Cash Flows Years Ended December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | $ 4,210,079 | $ 5,859,705 |
| Adjustments to reconcile net income to net cash provided by | ||
| operating activities: | ||
| Amortization | 57,149 | 38,816 |
| Allowance for credit losses | 30,166 | - |
| Changes in operating assets and liabilities: | ||
| Trade receivables | 4,787 | (139,264) |
| Marketing fund, restricted | 142,369 | (981,151) |
| Related party receivable | (616,187) | 753,587 |
| Prepaid expenses and other current assets | (631,305) | 41,682 |
| Other receivables | 46,123 | (2,952) |
| Accounts payable | (413,045) | 305,641 |
| Accounts payable—marketing fund, restricted | 68,880 | 182,889 |
| Accrued expenses and other current liabilities | (115,228) | (754,380) |
| Deferred franchise fees | 99,444 | 233,291 |
| Related party payable | (596,796) | 427,267 |
| Marketing fund liabilities, restricted | (423,715) | 1,407,044 |
| Deferred initial beverage fund | (387,386) | (789,083) |
| Net cash provided by operating activities | 1,475,335 | 6,583,092 |
| Cash flows from investing activities: | ||
| Website | - | (120,000) |
| Net cash used in investing activities | - | (120,000) |
| Cash flows from financing activities: | ||
| Distributions to members | (2,889,567) | (8,300,000) |
| Net cash used in financing activities | (2,889,567) | (8,300,000) |
| Net decrease in cash, cash equivalents | ||
| and restri |
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 marketing fund, restricted, experienced a change of $142,369 in 2024. This figure represents the net change in the marketing fund's restricted cash flows from operating activities during the year. In 2023, the corresponding figure was a negative $981,151.
This metric reflects the overall financial activity within the marketing fund, which is specifically designated for advertising, public relations, and other promotional activities aimed at enhancing the Cicis brand. The positive change in 2024 suggests that the marketing fund's financial position improved compared to the previous year.
For a prospective franchisee, this information is relevant because it provides insight into how Cicis manages its marketing resources. A positive change in the marketing fund could indicate more robust marketing initiatives and better brand support, which can be beneficial for individual franchise locations. However, it's essential to consider this figure in conjunction with other financial data and marketing strategies to gain a comprehensive understanding of Cicis's approach to brand promotion and support.