As of December 31, 2024, what was the amount of the receivable from affiliates for services provided by Cicis?

According to Cicis's 2025 Franchise Disclosure Document, the company had a receivable from affiliates for services in the amount of $695,717 as of December 31, 2024. This receivable is recorded as a related party receivable on the combined balance sheets. The services provided to these related-party affiliates include shared costs such as employee and personnel services, accounting and financial management, legal and tax, human resources, information technology, and participation in the company's retirement, welfare, and other benefit plans. These services are billed at an amount equal to the direct costs incurred by Cicis, plus allocated overhead costs based on management's estimation of services provided.

The costs associated with these services are allocated using methodologies based on proportionate revenue, headcount, or direct cost by Cicis compared to the related-party affiliates. This means that the amount owed by affiliates is determined by how much they utilize these shared services in relation to Cicis's own usage.

For a prospective franchisee, this information provides insight into the financial relationships between Cicis and its related entities. Understanding these related-party transactions can help a franchisee assess the overall financial health and stability of the Cicis franchise system. It's also worth noting that the receivable amount can fluctuate year to year, as evidenced by the $79,530 receivable at the end of 2023. This fluctuation could be due to changes in the volume of services provided or adjustments in the allocation methodologies.