What was the amount of securities held for sale by Cinnaholic as of December 31, 2022?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
Amounts collected but not spent at year end are not included in revenues and instead show as a marketing fund liability on the balance sheet. Marketing fund fees collected but not yet spent as of December 31, 2023, and 2022 were $0 and $10,218, respectively.
- SECURITIES HELD FOR SALE
The Company purchased publicly traded securities which as classified as current "securities held for sale" on the balance sheet of the Company. Unrealized gains or losses are recognized each year in the Company's Statement of Operations. For the year ended December 31, 2023, the company sold all it's security holding and distributed the funds. At December 31, 2023 and 2022, the securities available for sale were $0 and $88,212 respectively.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company held $88,212 in securities available for sale as of December 31, 2022. These securities were classified as current "securities held for sale" on Cinnaholic's balance sheet.
The FDD also states that Cinnaholic recognized unrealized gains or losses each year in the Company's Statement of Operations. Furthermore, the company sold all of its security holdings and distributed the funds during the year ended December 31, 2023.
For a prospective franchisee, this information provides insight into Cinnaholic's investment activities and how they manage their assets. The fact that Cinnaholic held and then sold these securities suggests they may use such investments as part of their financial strategy. However, it's important to note that past investment activity is not necessarily indicative of future behavior.