What was the reported amount of cash and cash equivalents for Cicis as of December 31, 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
tion of cash, cash equivalents and restricted cash reported within the combined balance sheets that sum to the total of the same such amounts shown in the combined statements of cash flows.
| 2024 | 2023 |
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 58–64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, as of December 31, 2024, Cicis reported total cash and cash equivalents of $1,854,735. Additionally, the company reported cash and cash equivalents restricted to the marketing fund of $434,199. The sum of these two amounts results in a total of $2,288,934 in cash and cash equivalents, including restricted funds.
It is important to note that the marketing fund has specific restrictions. According to Note 1 in the FDD, contributions to the marketing fund are restricted to advertising, public relations, merchandising, similar activities, and administrative expenses. These activities are intended to increase sales and enhance the public reputation of the Cicis brand. The administrative expenses may also include personnel expenses and allocated costs incurred by the company directly associated with administering the marketing fund.
Prospective franchisees should consider these figures in the context of Cicis's overall financial health and obligations. Understanding the distinction between unrestricted and restricted cash is crucial, as the latter cannot be used for general operating expenses. Reviewing the combined statements of cash flows and related notes in the FDD can provide further insights into how Cicis manages its cash resources and marketing fund.