What was the ending cash balance for Cinnaholic as of 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 ending cash balance for Cinnaholic as of December 31, 2023, was $42,590. This figure represents the amount of cash Cinnaholic had on hand at the close of its fiscal year. The FDD also indicates that the beginning cash balance for that year was $264,588, with a net decrease in cash of $221,998 during 2023.
For a prospective franchisee, understanding the franchisor's cash flow and cash balance is crucial. It provides insight into the financial stability and operational efficiency of Cinnaholic. A healthy cash balance suggests that the company is managing its finances effectively and has sufficient liquidity to meet its short-term obligations.
The decrease in cash during 2023, as reflected in the statement of cash flows, could be due to various factors such as investments, operating losses, or financing activities. Reviewing the complete statement of cash flows, including operating, investing, and financing activities, would give potential franchisees a clearer picture of how Cinnaholic used its cash during the year. It is important to note that the cash balances are maintained with accredited financial institutions.
Prospective franchisees should consider these figures in conjunction with other financial metrics and information provided in the FDD to assess the overall financial health of Cinnaholic. Consulting with a financial advisor is recommended to fully understand the implications of these financial statements.