What was the total value of Cicis' total current liabilities at the end of 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| 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 |
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 at the end of 2023 were $4,604,554. This figure represents the sum of several short-term financial obligations, including accounts payable ($413,045), accounts payable related to the marketing fund ($206,861), the current portion of deferred franchise fees ($73,092), accrued expenses and other current liabilities ($1,377,451), related party payable ($596,796), and marketing fund liabilities ($1,937,309).
For a prospective Cicis franchisee, understanding the composition and magnitude of these liabilities is crucial. Current liabilities are obligations due within one year, so this figure indicates the immediate financial pressures on Cicis. A high level of current liabilities relative to current assets could suggest liquidity issues, potentially impacting Cicis's ability to support its franchisees or invest in growth initiatives.
It's important to note that these liabilities reflect Cicis's financial obligations at a specific point in time. These liabilities can fluctuate due to various factors, such as changes in sales, expenses, or payment terms with suppliers. Franchisees should monitor these trends over time to assess the financial health and stability of Cicis. Reviewing the notes to the financial statements for more detailed explanations of these liabilities is also advisable.
Prospective franchisees should compare Cicis's current liabilities to those of other franchise systems in the restaurant industry to benchmark its financial health. Additionally, they should inquire about Cicis's plans for managing these liabilities and ensuring sufficient liquidity to meet its obligations and support its franchisees.