What was the net cash provided by operating activities for Cicis in 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | Net income | 9,407,023 | | Balance, December 31, 2022 | 3,543,007 | | Distributions | (8,300,000) | | Net income | 5,859,705 | | | | | Balance, December 31, 2023 | $ 1,102,712 |
Combined Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 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: | ||
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 net cash provided by operating activities in 2022 was $7,648,790. This figure represents the cash Cicis generated from its core business operations during that year.
For a prospective franchisee, this indicates the financial health and stability of Cicis. A positive net cash flow from operating activities suggests that the business is capable of generating sufficient cash to cover its operating expenses and potentially reinvest in growth. It is a key indicator of the brand's ability to sustain itself and support its franchisees.
However, it's important to consider this figure in conjunction with other financial metrics and trends. Reviewing Cicis's cash flow from operating activities over several years would provide a more comprehensive understanding of its financial performance. Additionally, comparing this figure to other similar franchise systems can help assess the relative strength of Cicis's cash-generating capabilities.