When did Cinnaholic's office space operating lease expire?
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. This lease expired on February 28, 2023.
The FDD also states that the total rent expense incurred by Cinnaholic in 2023 was $32,921, and in 2022 it was $31,863. Future minimum lease payments under the lease totaled $37,210. Of this amount, $31,858 was due during the year ending December 31, 2022, and $5,352 was due during the year ending December 31, 2023.
Starting in March 2023, after the expiration of the original lease, the minimum rent was $2,757 monthly. This suggests that Cinnaholic either renegotiated the lease or entered into a new month-to-month agreement after the original lease term ended. A prospective franchisee should confirm the details of Cinnaholic's current office lease arrangements and how these costs are reflected in the company's financial performance.