What was the total amount of Cicis' accounts receivable, net, trade receivables in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
and certain internal control-related matters that we identified during the audit.
Dallas, Texas April 25, 2025
Combined Balance Sheets December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 |
| Accounts receivable, net: | ||
| Trade receivables | 290,921 | 325,874 |
| Marketing fund, restricted | 2,395,119 | 2,537,488 |
| Related party receivable | 695,717 | 79,530 |
| Prepaid expenses and other current assets | 859,866 | 228,561 |
| Total current assets | 6,530,557 | 6,874,619 |
| Other receivables | 12,638 | 58,761 |
| Website, net | 150,333 | 194,333 |
| In |
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 total amount of trade receivables, net, was $325,874 in 2023. This figure represents the amount of money owed to Cicis for goods or services that have been delivered or used but not yet paid for. For a prospective franchisee, this indicates the level of outstanding payments Cicis is managing. It is important to note that this is the net figure, meaning any allowances for doubtful accounts have already been subtracted.
Accounts receivable are a normal part of business operations, especially in franchise systems where franchisees might have payment terms. However, a high or increasing accounts receivable balance could indicate potential issues with franchisees paying on time or the effectiveness of Cicis's credit and collection policies.
Prospective franchisees might want to inquire about Cicis's typical payment terms with franchisees, its procedures for managing and collecting receivables, and the criteria used to determine the allowance for doubtful accounts. Understanding these aspects can provide insights into the financial health and stability of the Cicis franchise system.