What was the current portion of Cicis' deferred initial beverage fund in 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ately $1,100 and $4,100 for 2024 and 2023, respectively.
Notes to Combined Financial Statements
Note 4. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
| 2024 | 2023 | |||
|---|---|---|---|---|
| Deferred initial beverage fund—current portion | $ |
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 current portion of the deferred initial beverage fund was $539,683 as of 2024. This deferred revenue relates to incentive payments from vendors to the former franchisor in 2018, intended to encourage the purchase of a set volume of their products. Cicis recognizes this income as it is earned, based on the volume of product purchased by the franchise system.
This deferred revenue is categorized into current and long-term portions, with the current portion representing the amount expected to be recognized within the next year. The deferred initial beverage fund is recorded on Cicis' combined balance sheets. The current portion is listed under accrued expenses and other current liabilities.
For a prospective franchisee, this deferred revenue and its recognition impact Cicis' financial statements. Understanding how Cicis accounts for vendor incentives and recognizes revenue is important for assessing the company's financial health and performance. Franchisees may want to inquire about the specific agreements with vendors and how these incentives are allocated and used to support the franchise system.