What was the total amount of Cicis' total current liabilities in 2024?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| 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 |
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 total current liabilities in 2024 were $3,137,275. This figure represents the sum of various short-term financial obligations that Cicis was expected to settle within one year. These liabilities include accounts payable, accounts payable related to the marketing fund, the current portion of deferred franchise fees, accrued expenses, other current liabilities, related party payable, and marketing fund liabilities.
Understanding the composition and magnitude of current liabilities is crucial for prospective franchisees. It provides insights into Cicis's short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests financial stability and efficient management of short-term obligations.
For a potential Cicis franchisee, this information is valuable in assessing the overall financial risk associated with investing in the franchise. It is advisable to compare these figures with those of previous years and with industry benchmarks to determine whether Cicis's current liabilities are within an acceptable range. Furthermore, it would be prudent to inquire about the specific nature of the accrued expenses and other current liabilities to gain a deeper understanding of the company's financial obligations.