What was the total amount of cash and cash equivalents held by Cicis in 2024?
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 |
| Intangible assets, net | 98,719 | 109,488 |
| Goodwill, net | 14,678 | 17,058 |
| Total noncurrent assets | 276,368 | 379,640 |
| Total assets | $ 6,806,925 | $ 7,254,259 |
| Liabilities and Members' Capital | ||
| Current liabilities: | ||
| Accounts payable | $ - | $ 413,045 |
| Accounts payable—marketing fund, restricted | 275,741 | 206,861 |
| Current portion of deferred franchise fees | 85,717 | 73,092 |
| Accrued expenses and other current liabilities | 1,262,223 | 1,377,451 |
| Related party payable | - | 596,796 |
| Marketing fund liabilities, restricted | 1,513,594 | 1,937,309 |
| Total current liabilities | 3,137,275 | 4,604,554 |
| Deferred franchise fees, less current portion | 627,681 | 540,862 |
| Deferred initial beverage fund | 618,745 | 1,006,131 |
| Total liabilities | 4,383,701 | 6,15 |
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 company's cash and cash equivalents totaled $1,854,735 in 2024. Additionally, Cicis held $434,199 in cash and cash equivalents specifically within its marketing fund, which is restricted. Combining these two figures, the total cash and cash equivalents held by Cicis in 2024 amounted to $2,288,934.
These figures provide a snapshot of Cicis's liquid assets, indicating the readily available funds the company has at its disposal. Cash and cash equivalents are crucial for covering immediate operational expenses, managing unforeseen financial challenges, and making strategic investments. The restricted marketing fund portion suggests that these funds are earmarked for specific marketing activities and cannot be used for general corporate purposes.
A prospective franchisee should consider these cash reserve levels in relation to Cicis's overall financial health and stability. While $2,288,934 may seem substantial, it's essential to assess whether this amount is sufficient to support Cicis's ongoing operations, growth plans, and potential liabilities. Comparing these figures to previous years and industry benchmarks can provide further insights into Cicis's financial management and risk profile.
It is also important to note that the FDD includes a combined total of cash and cash equivalents, including the marketing fund restricted amount, for both 2024 ($2,288,934) and 2023 ($3,703,166). This combined figure can be useful for comparing the company's overall cash position year-over-year. A decrease in cash and cash equivalents from 2023 to 2024 could indicate changes in profitability, investment strategies, or increased operational costs, all of which are relevant for potential franchisees to understand.