What was the net cash provided by operating activities for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 restricted cash | ( 1,414,232) | ( 1,836,908) | |
| Cash, cash equivalents and restricted cash: | |||
| Beginning | 3,703,166 | 5,540,074 | |
| Ending | $ 2,288,934 | $ 3,703,166 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $6,583,092. This figure reflects the cash Cicis generated from its core business operations during that year. It's a key indicator of the company's financial health and its ability to fund ongoing expenses and future growth.
This number is derived by adjusting Cicis's net income of $5,859,705 with non-cash items and changes in working capital accounts. These adjustments include items like amortization ($38,816), changes in trade receivables ($-139,264), marketing fund restrictions ($-981,151), related party receivables ($753,587), prepaid expenses ($41,682), other receivables ($-2,952), accounts payable ($305,641), marketing fund accounts payable ($182,889), accrued expenses ($-754,380), deferred franchise fees ($233,291), related party payable ($427,267), marketing fund liabilities ($1,407,044), and deferred initial beverage fund ($-789,083).
For a prospective Cicis franchisee, understanding the net cash provided by operating activities is crucial. It demonstrates the brand's ability to generate cash from its operations, which can impact the support and resources available to franchisees. A higher net cash flow typically indicates a more stable and profitable franchise system. Note that the net cash provided by operating activities decreased from $7,648,790 in 2022 to $6,583,092 in 2023 and further decreased to $1,475,335 in 2024. This trend should be investigated by a prospective franchisee.
It is important for potential franchisees to review these figures in the context of Cicis's overall financial statements and to compare them to industry benchmarks. Additionally, prospective franchisees should inquire about the factors that influence these cash flows and how Cicis plans to maintain or improve its financial performance.