What was the reported value of Cicis' website in development in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ong other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.
Dallas, Texas April 19, 2024
Combined Balance Sheets December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,931,372 | $ 5,107,778 |
| Cash and cash equivalents—marketing fund, restricted | 771,794 | 432,296 |
| Accounts receivable, net: | ||
| Trade receivables | - | 186,610 |
| Marketing fund, restricted | 2,863,362 | 1,556,337 |
| Related party receivable | 79,530 | 833,117 |
| Prepaid expenses and other current assets | 228,561 | 270,243 |
| Total current assets | 6,874,619 | 8,386,381 |
| Ot |
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 reported value of the website in development was $194,333 in 2023. This figure represents the company's investment in creating or improving its online presence during that year. For a prospective franchisee, this indicates Cicis's ongoing commitment to technology and digital marketing.
It's important to note that this value is listed as an asset on Cicis's balance sheet. This means that Cicis views the website as having future economic value. The FDD also mentions that during the years ended December 31, 2024 and 2023, amortization expense associated with the website totaled $44,000 and $25,667, respectively. Amortization is the process of spreading the cost of an intangible asset over its useful life.
Furthermore, the FDD states that Cicis periodically evaluates the carrying value of long-lived assets, including intangible assets like the website. If the anticipated cash flow from the asset is less than its carrying value, Cicis would recognize an impairment loss. This means that the actual value of the website could be lower than the reported value if it's not performing as expected. A potential franchisee should consider the importance of Cicis's website to the overall business and how it might impact their franchise's performance.