What was the net cash used in financing activities for Cinnabon in year 2?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 346,347 | $ 340,914 |
Consolidated statements of changes in member's equity
| Member's | |
|---|---|
| equity | |
| Balance at December 26, 2021 | $ 275,913 |
| Non-cash capital contributions from Member | 1,285 |
| Distributions to Member, net | (208,262) |
| Net income | 208,711 |
| Balance at December 25, 2022 | 277,647 |
| Distributions to Member, net | (243,307) |
| Net income | 248,990 |
| Balance at December 31, 2023 | 283,330 |
| Distributions to Member, net | (251,656) |
| Net income | 253,964 |
| Balance at December 29, 2024 | $ 285,638 |
Consolidated statements of cash flows
| December 29, | December 31, | December 25, | |
|---|---|---|---|
| For the fiscal years ended: | 2024 | 2023 | 2022 |
| Cash flows from operating activities: | |||
| Net income | $ 253,964 | $ 248,990 | $ 208,711 |
| Adjustments to reconcile net income to net cash provided | |||
| by operating activities: | |||
| Depreciation and amortization expense | 247 | 300 | 2,037 |
| Provision for (recoveries from) credit losses | 655 | 3 | (289) |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, prepaid expenses and other assets | (7,409) | (5,708) | (2,295) |
| Accrued expenses and other liabilities | 668 | 473 | (125) |
| Deferred revenue | 4,274 | (1,626) | 2,100 |
| Intercompany receivable / payable | (1,816) | 2,040 | (495) |
| Net cash provided by operating activities | 250,583 | 244,472 | 209,644 |
| Cash flows from investing activities: | |||
| Purchases of assets held for lease | (37) | (220) | (197) |
| Net cash used in investing activities | (37) | (220) | (197) |
| Cash flows from financing activities: |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the net cash used in financing activities for the fiscal year ended December 25, 2022, was $208,262. This figure represents the cash outflow related to financing activities during that period.
For a prospective Cinnabon franchisee, understanding the net cash used in financing activities provides insight into how the company manages its debt, equity, and dividend payments. A higher number suggests that Cinnabon may be investing heavily in expansion or has significant debt obligations. Conversely, a lower number could indicate financial stability or a more conservative approach to financial management.
It is important to note that this figure is specific to the franchisor's operations and may not directly impact the franchisee's day-to-day business. However, it is a useful metric for assessing the overall financial health and stability of the Cinnabon franchise system. Franchisees should consider this information in conjunction with other financial data, such as revenue, expenses, and profitability, to gain a comprehensive understanding of the franchise's financial performance.