What was the net increase in cash for Cinnaholic in 2024?
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 net increase in cash for the period ending December 31, 2024, was $11,588. This indicates that Cinnaholic had a positive change in its cash position during the year, which can be a sign of improved financial health and operational efficiency. In contrast, the net increase in cash for the prior year, 2023, was a negative ($221,998).
For a prospective franchisee, this information is crucial as it provides insight into the financial stability and cash flow management of Cinnaholic. A positive net increase in cash suggests that the company is generating more cash than it is using, which can be reinvested into the business, used to pay down debt, or distributed to members. Conversely, a negative net increase in cash may indicate that the company is facing financial challenges or is investing heavily in growth initiatives.
It's important to note that the net increase in cash is just one aspect of Cinnaholic's overall financial performance. A prospective franchisee should also consider other factors such as revenue, expenses, assets, and liabilities when evaluating the financial viability of the franchise opportunity. Reviewing the complete financial statements and consulting with a financial advisor can provide a more comprehensive understanding of Cinnaholic's financial health and potential risks and rewards.