For what years are the combined statements of cash flows included in the Cicis FDD?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit G are (i) the combined audit report for us and our affiliate, CiCi Services Company, LLC, which includes our and CiCi Services Company, LLC's combined balance sheet as of December 31, 2024 and 2023, and the related combined statements of income, changes in members' capital and cash flows for the years then ended on December 31, 2024 December 31, 2023, December 31, 2022, and (ii) the Guaranty of Performance issued by our affiliate, CiCi Services. Our and CiCi Services' fiscal year ends on December 31.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 64)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the combined audit report includes combined statements of cash flows for the years ended December 31, 2024, December 31, 2023, and December 31, 2022. This information is part of the combined audit report for Cicis and its affiliate, CiCi Services Company, LLC. The inclusion of three years of cash flow statements allows prospective franchisees to review the financial trends and stability of Cicis over that period.
The combined statements offer insights into how Cicis has managed its cash, including its sources and uses of cash, over the three-year period. This can help a potential franchisee assess the company's ability to meet its financial obligations and fund its operations. Reviewing these statements in detail is a standard part of due diligence when evaluating a franchise opportunity.
Specifically, the FDD mentions that cash flows of the marketing fund are included in the combined statements of cash flows but are restricted for advertising, public relations, and similar activities. This means that while the marketing fund's cash flow is part of the overall statement, its use is limited to specific purposes outlined in the franchise agreements. Understanding these restrictions is important for franchisees as it affects how marketing funds can be utilized to support their business.