What was the total value of Cicis' trade receivables, net, as of December 31, 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's 2025 Franchise Disclosure Document, the total value of trade receivables, net, as of December 31, 2023, was $325,874. This figure represents the amount of money owed to Cicis for goods or services that have been delivered or used but not yet paid for. Trade receivables are considered current assets, reflecting their short-term nature and expectation of payment within a year.
For a prospective Cicis franchisee, understanding the level of trade receivables can provide insights into the company's financial health and its ability to manage collections. A higher value of trade receivables might indicate that Cicis is extending more credit to its customers or franchisees, which could potentially increase sales but also carries the risk of bad debts. Conversely, a lower value might suggest stricter credit policies or more efficient collection processes.
It's important to note that this figure is a snapshot in time and can fluctuate based on various factors, including seasonal sales patterns, payment terms, and economic conditions. Franchisees should monitor these trends to assess the financial stability of Cicis and its impact on their own operations. Reviewing the aging of these receivables (how long they have been outstanding) would provide further insight into potential collection issues.