What was the value of the website in development for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $ 4,210,079 | $ 5,859,705 | |
| Adjustments to reconcile net income to net cash provided by | |||
| operating activities: | |||
| Amortization | 57,149 | 38,816 | |
| Allowance for credit losses | 30,166 | - | |
| Changes in operating assets and liabilities: | |||
| Trade receivables | 4,787 | ( 139,264) | |
| Marketing fund, restricted | 142,369 | ( 981,151) | |
| Related party receivable | ( 616,187) | 753,587 | |
| Prepaid expenses and other current assets | ( 631,305) | 41,682 | |
| Other receivables | 46,123 | ( 2,952) | |
| Accounts payable | ( 413,045) | 305,641 | |
| Accounts payable—marketing fund, restricted | 68,880 | 182,889 | |
| Accrued expenses and other current liabilities | ( 115,228) | ( 754,380) | |
| Deferred franchise fees | 99,444 | 233,291 | |
| Related party payable | ( 596,796) | 427,267 | |
| Marketing fund liabilities, restricted | ( 423,715) | 1,407,044 | |
| Deferred initial beverage fund | ( 387,386) | ( 789,083) | |
| Net cash provided by operating activities | 1,475,335 | 6,583,092 | |
| Cash flows from investing activities: | |||
| Website | - | ( 120,000) | |
| Net cash used in investing activities | - | ( 120,000) | |
| Cash flows from financing activities: | |||
| Distributions to members | ( 2,889,567) | ( 8,300,000) | |
| Net cash used in financing activities | ( 2,889,567) | ( 8,300,000) | |
| Net decrease in cash, cash equivalents | |||
| and restricted cash | ( 1,414,232) | ( 1,836,908) | |
| Cash, cash equivalents and restricted cash: | |||
| Beginning | 3,703,166 | 5,540,074 | |
| Ending | $ 2,288,934 | $ 3,703,166 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the value of the website in development was $100,000 in 2023. This figure represents Cicis's investment in creating or improving its online presence during that year. This is a noncurrent asset, meaning it is not expected to be converted to cash within one year.
For a prospective franchisee, this indicates Cicis is investing in technology and digital platforms. A developed website can enhance brand visibility, customer engagement, and online ordering capabilities, which are crucial for attracting and retaining customers. This investment could translate to better marketing and operational support for franchisees.
It's important to note that this value reflects the cost incurred to date for the website's development. The actual value to a franchisee will depend on the website's effectiveness in generating leads, driving sales, and providing necessary information and support. The FDD also lists the website value as $194,333 in 2023, which is the 'net' value after accumulated amortization. Amortization is the process of spreading out the cost of an intangible asset over its useful life.
Prospective franchisees should inquire about the specific features and functionalities of the website, its performance metrics (such as traffic and conversion rates), and how it benefits franchise operations. Understanding the franchisor's digital strategy and the website's role in it can help franchisees assess the potential return on their investment.