What was the net income for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
51,547 | 5,138,878 | | Commitments and contingencies (Note 5) | | | | Members' capital | 1,102,712 | 3,543,007 | | Total liabilities and members' capital | $ 7,254,259 | $ 8,681,885 |
Combined Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenue: | ||
| Marketing fees | $ 17,219,322 | $ 15,444,992 |
| Franchise royalties | 14,105,892 | 12,763,629 |
| Franchise fees | 57,395 | 56,650 |
| Incentive income from vendors | 758,680 | 696,674 |
| Marketing income from vendors | 9,123,662 | 7,780,359 |
| Total revenues | 41,264,951 | 36,742,304 |
| Expenses: | ||
| Marketing general and administrative costs | 25,000,069 | 20,591,878 |
| Other general and administrative | 10,509,727 | 6 |
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 income for the company in 2023 was $5,859,705. This figure represents the company's profitability after deducting all expenses from its total revenues for the specified year. In comparison, the net income for 2022 was $9,407,023, indicating a decrease in net income from 2022 to 2023.
For a prospective franchisee, understanding Cicis's net income is crucial as it provides insight into the financial health and stability of the company. A higher net income generally suggests a more robust and successful franchise system. However, it's also important to consider the trend in net income over multiple years to assess whether the company's profitability is increasing, decreasing, or remaining stable. The decrease in net income from 2022 to 2023 could prompt further investigation into the factors contributing to this change.
Additionally, the FDD provides a breakdown of Cicis's revenues and expenses, which can offer a more detailed understanding of the company's financial performance. Total revenues for 2023 were $41,264,951, while total expenses amounted to $35,509,796. Analyzing these figures can help potential franchisees identify the key revenue streams and cost drivers within the Cicis franchise system. For instance, marketing fees and franchise royalties constitute significant portions of the total revenue, while marketing general and administrative costs represent a substantial expense. Understanding these components can aid in evaluating the overall financial viability of investing in a Cicis franchise.