What was the change in prepaid expenses and other current assets for Cicis in 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 5,540,074 | 5,268,784 | |
| End of year | $ 3,703,166 | $ 5,540,074 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, in 2022, prepaid expenses and other current assets were listed as $532,467. In 2023, this value changed to $41,682. This represents a significant decrease of $490,785 in prepaid expenses and other current assets from 2022 to 2023.
This fluctuation can be important for prospective franchisees as it reflects changes in Cicis's operational efficiency and financial management. Prepaid expenses typically include items like insurance premiums, rent, and advertising costs paid in advance. A large decrease could indicate changes in how Cicis manages these expenses, potentially impacting the franchisee's own financial planning and cash flow management.
Franchisees should inquire about the reasons behind this substantial change. Understanding whether it's due to a change in accounting practices, improved expense management, or other factors will provide valuable insight into the financial health and stability of the Cicis franchise system. This information can help franchisees better anticipate and manage their own expenses and financial performance.