What was the net loss for Cinnaholic for the year ended December 3, 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Liabilities | 996,666 | 1,143,328 | | Contract liability, net of current | 2,259,702 | 2,887,231 | | Members' (Deficit) | (1,710,293) | (2,290,083) | | Total Liabilities and Members' (Deficit) | $ 1,546,075 | $ 1,740,476 |
CINNAHOLIC FRANCHISING LLC STATEMENTS OF OPERATIONS AND MEMBERS' (DEFICIT)
| YEARS ENDED DECEMBER 3 | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Revenues | |||
| Royalties | $ 1,481,750 | $ 1,326,887 | |
| Franchise fees | 1,181,694 | 952,228 | |
| Marketing fund fees | 309,415 | 610,238 | |
| Other | 546,080 3,518,939 | 32,604 2,921,957 | |
| Operating Expenses | 3,047,740 | 3,226,402 | |
| Loss from Operations | 471,199 | (304,445) | |
| Gain (Loss) on tradin |
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 year ended December 31, 2023, was $331,695. This figure represents the overall financial loss Cinnaholic Franchising LLC experienced during that fiscal year, taking into account all revenues and expenses. A prospective franchisee should consider this loss in the context of Cinnaholic's overall financial performance and trends.
Specifically, the FDD shows that Cinnaholic's revenues for 2023 included $1,326,887 in royalties, $952,228 in franchise fees, $610,238 in marketing fund fees, and $32,604 from other sources, totaling $2,921,957. However, operating expenses totaled $3,226,402, and there was a loss on trading securities of $27,250, contributing to the net loss.
Understanding the components of Cinnaholic's revenues and expenses can provide a potential franchisee with insights into the factors driving profitability. It's important to analyze these figures in comparison to previous years and industry benchmarks to assess the financial health and stability of the franchise system. Reviewing the complete financial statements and notes, including discussions with current franchisees, is essential for a thorough understanding.