What were the total current liabilities for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current liabilities: | |||
|---|---|---|---|
| Accounts payable | $ 413,045 | $ 107,404 | |
| Accounts payable—marketing fund, restricted | 23,972 | ||
| Current portion of deferred franchise fees | 73,092 | 42,792 | |
| Accrued expenses and other current liabilities | 1,377,451 | 2,131,831 | |
| Related party payable | 596,796 | 169,529 | |
| Marketing fund liabilities, restricted | 1,937,309 | 530,265 | |
| Total current liabilities | 4,604,554 | 3,005,793 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the total current liabilities for Cicis in 2023 were $3,005,793. Current liabilities are obligations due within one year, representing the company's short-term financial obligations. These liabilities include accounts payable, the current portion of deferred franchise fees, accrued expenses, related party payables, and marketing fund liabilities.
Understanding the composition and amount of current liabilities is crucial for prospective franchisees. It provides insight 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 may indicate potential liquidity issues, which could affect the franchisor's ability to support its franchisees.
For a prospective Cicis franchisee, this figure is an important benchmark when evaluating the overall financial stability of the franchise system. It is advisable to compare this number with previous years and with similar figures from other franchise systems to assess whether Cicis is managing its short-term debt effectively. Consulting with a financial advisor to analyze these figures in conjunction with other financial metrics is recommended to make an informed investment decision.