As of April 30, 2025, what was the total amount of liabilities and equity for Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Current Assets | $2,487,071.19 | | Other Assets | | | Accounts Receivable - Accrual | 174,944.79 | | Inter-Company Receivable Athens | 0.00 | | Notes Receivable - F4 Investments | 0.18 | | Total Other Assets | $174,944.97 | | TOTAL ASSETS | $2,662,016.16 |
Balance Sheet As of April 30, 2025
| TOTAL | |
|---|---|
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabilities | |
| Accounts Payable Accrual | 13,282.0 |
| Advertising Fund Liability | 10,218.00 |
| Deferred revenues - ST | 1,013,889.00 |
| Direct Deposit Payable | 0.0 |
| Gift Cards | 7,370.7 |
| Interest Payable | 10,661.00 |
| Loan from On Deck | 0.00 |
| Loan from SBA | 0.00 |
| Payroll Liabilities | 295,119.69 |
| Total Other Current Liabilities | $1,350,540.43 |
| Total Current Liabilities | $1,350,540.43 |
| Long-Term Liabilities | |
| Cinnaholic Canada | 440,959.00 |
| Deferred Revenues | 2,632,111.00 |
| Loan from Canada | 0.00 |
| Notes Payable | 0.00 |
| Loan from Daryl Dollinger | 55,000.00 |
| Total Notes Payable | 55,000.00 |
| Total Long-Term Liabilities | $3,128,070.00 |
| Total Liabilities | $4,478,610.43 |
| Equity | |
| Equity Correction Account | -0.02 |
| Opening Balance Equity | 9.84 |
| Other Comprehensive Income | 0.49 |
| Retained Earnings | -1,506,115.4 |
| Shareholder Distribution - Daryl I Dollinger | -113,696.00 |
| Shareholder Distribution - Florian Radke | -105,361.0 |
| Shareholder Distribution - Spencer Reid | -170,750.0 |
| Shareholder Distributions |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the total liabilities and equity as of December 31, 2023, was $2,662,016.16. This figure represents the sum of all the company's obligations to creditors (liabilities) and the owners' stake in the company (equity) at that specific point in time. It's a fundamental accounting equation where Assets = Liabilities + Equity. This means that Cinnaholic's total assets were equal to this combined figure on December 31, 2023.
Within the liabilities section, Cinnaholic had both current and long-term liabilities. Current liabilities, totaling $1,350,540.43, include obligations due within a year, such as accounts payable accrual ($13,282.0), advertising fund liability ($10,218.00), deferred revenues ($1,013,889.00), gift cards ($7,370.7), interest payable ($10,661.00) and payroll liabilities ($295,119.69). Long-term liabilities, totaling $3,128,070.00, consist of obligations extending beyond a year, such as Cinnaholic Canada ($440,959.00), deferred revenues ($2,632,111.00), and a loan from Daryl Dollinger ($55,000.00).
The equity section reflects the owners' stake in Cinnaholic, which was a negative $1,816,594.27. This includes items like equity correction account (-0.02), opening balance equity (9.84), other comprehensive income (0.49), retained earnings (-1,506,115.4), shareholder distributions (-113,696.00, -105,361.0, -170,750.0, and -86,522.00), shareholder investment from Lullwater Partners ($181,500.00), and net income (-15,660.14). The negative equity indicates that Cinnaholic's liabilities exceeded its assets at the end of 2023.
It is important to note that these figures are from December 31, 2023. While the financial statements were made available until April 28, 2025, the document does not provide an updated total for liabilities and equity as of April 30, 2025. A prospective franchisee should request more current financial statements to assess the company's financial position accurately before making any investment decisions.