According to Cinnaholic's 2025 Franchise Disclosure Document, as of December 31, 2023, the non-refundable franchise fees received but not yet earned totaled $3,288,772. These are franchise fees that Cinnaholic has collected but has not yet recognized as revenue because they have not yet provided all the services or fulfilled all the obligations associated with those fees.

This accounting practice, in compliance with revenue recognition standards, reflects that Cinnaholic recognizes revenue over the life of the franchise agreement as they provide ongoing services and support to the franchisee. The initial franchise fee is not fully earned at the moment of payment but is instead recognized gradually as Cinnaholic fulfills its obligations under the franchise agreement.

For a prospective Cinnaholic franchisee, this deferred revenue figure indicates the amount of initial franchise fees that Cinnaholic still has an obligation to fulfill through ongoing services and support. It also reflects the financial health and accounting practices of the franchisor, showing how they recognize revenue in accordance with accounting standards. The FDD also notes that for the year ending December 31, 2023, prepaid commissions paid but not expensed were $972,229.