What was the cash balance in Cinnaholic's account as of December 31, 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's franchise arrangements generally include a license which provides for payments of initial fees as well as continuing royalties to the Company based upon a percentage of sales. Under this arrangement, franchisees are granted the right to operate a Cinnaholic
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the cash balance in the company's account as of December 31, 2023, was $42,590. Cinnaholic maintains its cash and cash equivalents with accredited financial institutions. This figure represents the total amount of cash Cinnaholic had available at the end of 2023.
For a prospective franchisee, understanding the franchisor's cash position can be important. A healthy cash balance suggests financial stability and the ability to support franchisees. However, it is essential to consider this figure in the context of Cinnaholic's overall financial statements, including their liabilities and equity, to get a complete picture of their financial health.
The FDD also states that financial instruments primarily consist of cash and cash equivalents. Furthermore, the financial statements are prepared using the accrual basis of accounting, where revenues are recognized when earned and expenses are recognized when a liability is incurred, regardless of when the funds are received or disbursed. This accounting method provides a more accurate representation of Cinnaholic's financial performance over time.