What was the total value of Cicis' members' capital at the end of 2022?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
ong other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.
Dallas, Texas April 19, 2024
Combined Balance Sheets December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,931,372 | $ 5,107,778 |
| Cash and cash equivalents—marketing fund, restricted | 771,794 | 432,296 |
| Accounts receivable, net: | ||
| Trade receivables | - | 186,610 |
| Marketing fund, restricted | 2,863,362 | 1,556,337 |
| Related party receivable | 79,530 | 833,117 |
| Prepaid expenses and other current assets | 228,561 | 270,243 |
| Total current assets | 6,874,619 | 8,386,381 |
| Other receivables | 58,761 | 55,809 |
| Website in development | 194,333 | 100,000 |
| Intangible assets, net | 109,488 | 120,257 |
| Goodwill, net | 17,058 | 19,438 |
| Total noncurrent assets | 379,640 | 295,504 |
| Total assets | $ 7,254,259 | $ 8,681,885 |
| Liabilities and Members' Capital | ||
| Current liabilities: | ||
| Accounts payable | $ 413,045 | $ 107,404 |
| Accounts payable—marketing fund, restricted | 206,861 | 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 |
| Deferred franchise fees, less current portion | 540,862 | 337,871 |
| Other |
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 value of the members' capital at the end of 2022 was $3,543,007. This figure represents the equity or ownership stake in Cicis held by its members (owners/shareholders) at that specific point in time. Members' capital is a key indicator of the company's financial health and stability. It reflects the cumulative investments and retained earnings of the business that belong to its owners.
For a prospective franchisee, understanding the trend in members' capital is crucial. A growing members' capital typically indicates that the company is profitable and retaining earnings, which can be a positive sign. Conversely, a declining members' capital might raise concerns about the company's financial performance and its ability to support its franchisees. In 2023, this figure decreased to $1,102,712.
It is important to note that members' capital is just one aspect of Cicis' overall financial picture. A prospective franchisee should also consider other financial metrics, such as revenue, expenses, assets, and liabilities, to get a comprehensive understanding of the company's financial health. Additionally, it is advisable to consult with a financial advisor to interpret these financial statements and assess the potential risks and rewards of investing in a Cicis franchise.
In the franchise industry, it is common for franchisors to present a balance sheet in their FDD, which includes a line item for members' capital or owners' equity. This allows potential franchisees to evaluate the financial stability and long-term viability of the franchise system. Reviewing these figures over several years can provide insights into the franchisor's financial performance and its ability to support its franchisees' success.