What is the monthly minimum rent for Cinnaholic starting in March 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ized 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.
- OPERATING LEASES
The Company leases office space under an operating lease that expires on February 28, 2023. Total rent expense
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company leases office space under an operating lease that expired on February 28, 2023. The total rent expense incurred in 2023 was $32,921. Future minimum lease payments under this lease totaled $37,210, with $31,858 due during the year ending December 31, 2022, and $5,352 due during the year ending December 31, 2023. Starting in March 2023, the minimum monthly rent is $2,757.
For a prospective Cinnaholic franchisee, this information is relevant as it provides insight into the franchisor's leasing obligations and expenses. While this specific lease does not directly impact franchisees, it offers a glimpse into the franchisor's financial management and operational costs. Understanding the franchisor's financial commitments can help franchisees assess the overall stability and financial health of the Cinnaholic franchise system.
It's important to note that the lease described in the document pertains to Cinnaholic's office space and not necessarily the retail locations that franchisees would operate. Franchisees should anticipate their own rental expenses, which will vary depending on location, size, and lease terms. This figure of $2,757 monthly provides a benchmark for understanding potential leasing costs, but franchisees should conduct thorough market research to determine realistic rental rates in their desired area.
Prospective franchisees should inquire with Cinnaholic about typical lease terms and costs for franchise locations. Understanding the factors that influence rental expenses and how Cinnaholic supports franchisees in negotiating favorable lease agreements is crucial for financial planning and success. This information, combined with the franchisor's financial statements, can provide a more comprehensive view of the financial aspects of operating a Cinnaholic franchise.