What was the net loss for Cinnaholic in the year ended December 31, 2023?
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 for the year ended December 31, 2023, was $331,695. This figure reflects the overall financial performance of Cinnaholic Franchising LLC during that period, taking into account all revenues, expenses, and other financial impacts. For comparison, the net loss for the previous year, 2022, was $562,616.
It's important to note that this net loss is specific to Cinnaholic Franchising LLC and does not reflect the financial performance of individual Cinnaholic franchise locations. Prospective franchisees should carefully consider these figures as part of their due diligence, but also recognize that their own store's financial results may vary based on factors such as location, management, and local market conditions.
The FDD also includes additional financial statements, such as balance sheets and statements of cash flow, which can provide further insights into Cinnaholic's financial health. Reviewing these statements in detail, possibly with the assistance of a financial advisor, is crucial for any potential franchisee to fully understand the financial risks and opportunities associated with investing in a Cinnaholic franchise.
While a net loss might raise concerns, it's not uncommon for franchising companies, especially those still growing, to experience losses in certain years. The key is to understand the reasons behind the loss and to assess the company's plan for future profitability. A prospective franchisee should discuss these financial results with Cinnaholic's management team to gain a better understanding of their financial strategy and outlook.