What was the amount of Cinnaholic's SBA loan payments in the year ended December 31, 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| 71,199 | (331,695) | |||
|---|---|---|---|---|
| Members' (Deficit) - Beginning | (2,290,083) | (2,025,527) | ||
| Members' Contributions (Distributions) | 108,591 | 67,139 | ||
| Members' (Deficit) - Ending | $ (1,710,293) | $ (2,290,083) | # CINNAHOLIC FRANCHISING LLC STATEMENTS OF CASH FLOWS |
| YEARS ENDED | DECEMBER 31 | ||
|---|---|---|---|
| 2024 | 2023 | ||
| Operating Activities | |||
| Net (Loss) | $ 471,199 | $ (331,695) | |
| Adjustments to reconcile net (loss) to net cash | 3 471,133 | 3 (331,033) | |
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Due from franchisee | 1,500 | _ | |
| Accounts Receivable | - | 94,821 | |
| Prepaid Expenses | 117,143 | (101,926) | |
| Investments (securities) | - | 88,212 | |
| Contract Assets | 87,346 | 3,657 | |
| Accounts payable and accrued expenses | (110,381) | (12,248) | |
| Related party payable | 143,121 | 61,000 | |
| Advertising fund liability | (10,218) | ||
| Contract Liabilities | (806,931) (97,003) (27)2227 | 67,572 (140,825) (2.0,020) | |
| Financing Activities | |||
| SBA loan payments | (148,312) | ||
| Investing Activities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company made $148,312 in SBA loan payments during the year ended December 31, 2023. This figure is part of the broader financial activities reported in the cash flow statement. SBA loans are a common method for businesses, including franchises, to secure funding, and these payments represent Cinnaholic Franchising LLC's repayment of such a loan during that period.
For a prospective franchisee, understanding these payments is crucial as it provides insight into the company's financial obligations and cash flow management. SBA loan payments are classified under financing activities, which also include members' contributions or distributions. Reviewing these figures helps potential franchisees assess the financial stability and capital structure of Cinnaholic.
It's important to note that this figure reflects payments made by Cinnaholic Franchising LLC itself, and not necessarily the financing activities of individual franchisees. Franchisees may also obtain SBA loans or other financing to establish their own Cinnaholic locations, but those financial arrangements are separate from the franchisor's. Therefore, while this information provides a glimpse into Cinnaholic's financial practices, prospective franchisees should focus on their own projected financial statements and obligations when considering an investment.