What was the total value of Cicis' intangible assets, net, 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' 2025 Franchise Disclosure Document, the total value of their intangible assets, net, was $109,488 in 2023. Intangible assets are non-physical assets that can include things like patents, trademarks, and goodwill. For a prospective franchisee, this figure provides a snapshot of the value Cicis places on these types of assets.
It's important to note that these assets are reported net, meaning any accumulated amortization or impairment has already been factored in. Amortization is the systematic reduction of the book value of an intangible asset over its useful life, similar to depreciation for physical assets. Impairment occurs when the fair value of an asset falls below its carrying value on the balance sheet. Cicis periodically evaluates the carrying value of long-lived assets, including intangible assets, and will recognize a loss if the anticipated cash flow from the asset is less than its carrying value.
Understanding the value and amortization of intangible assets can be crucial for assessing the overall financial health and stability of Cicis. Franchisees may want to inquire about the specific types of intangible assets Cicis holds and how they contribute to the brand's competitive advantage. Additionally, understanding the company's policies on asset impairment can provide insights into how Cicis manages and protects the value of its assets over time.