What was the net loss for Cinnaholic at the end of the year 2022?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
A loan payable, net of current | - | 145,046 | | Contract liability, net of current | 2,887,231 | 2,453,611 | | Members' (Deficit) | (2,290,083) | (2,025,527) | | Total Liabilities and Members' (Deficit) | $ 1,740,476 | $ 2,047,238 |
CINNAHOLIC FRANCHISING LLC STATEMENTS OF OPERATIONS AND MEMBERS' (DEFICIT)
| YEARS ENDED DECEMBER 31 | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenues | |||
| Royalties | $ 1,326,887 | $ 1,082,982 | |
| Franchise fees | 952,228 | 524,983 | |
| Marketing fund fees | 610,238 | 557,567 | |
| Other | 32,604 2,921,957 | 11,787 2,177,319 | |
| Operating Expenses | 3,226,402 | 2,728,132 | |
| Loss from Operations | (304,445) | ( |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the net loss for the company at the end of the year 2022 was $562,616. This figure represents the overall loss after accounting for revenues, operating expenses, and gains or losses on trading securities. This loss is a key indicator of Cinnaholic's financial performance during that period.
Specifically, the FDD provides a breakdown of how this net loss was derived. In 2022, Cinnaholic's revenues totaled $2,177,319, while its operating expenses amounted to $2,728,132. Additionally, the company experienced a loss of $11,803 on trading securities. When these figures are combined, they result in the net loss of $562,616.
For a prospective franchisee, this net loss figure is an important consideration. It provides insight into the financial health and stability of Cinnaholic. While a single year's loss does not necessarily indicate long-term problems, it is crucial to investigate the reasons behind the loss and understand how Cinnaholic plans to address it. A potential franchisee should inquire about the factors that contributed to the loss, such as increased operating expenses or decreased revenues, and assess the franchisor's strategies for improving profitability in subsequent years. Reviewing financial statements from multiple years can provide a more comprehensive understanding of the franchise's financial trends.