What is the reported amount of Cinnaholic's Loan from Daryl Dollinger?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| TOTAL | |
|---|---|
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabilities | |
| Accounts Payable Accrual | 13,282.0 |
| Advertising Fund Liability | 10,218.00 |
| Deferred revenues - ST | 1,013,889.00 |
| Direct Deposit Payable | 0.0 |
| Gift Cards | 7,370.7 |
| Interest Payable | 10,661.00 |
| Loan from On Deck | 0.00 |
| Loan from SBA | 0.00 |
| Payroll Liabilities | 295,119.69 |
| Total Other Current Liabilities | $1,350,540.43 |
| Total Current Liabilities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company has a loan from Daryl Dollinger. As of the balance sheet for December 31, 2024, the reported amount for this loan is $55,000.00. This loan is categorized as a long-term liability on Cinnaholic's balance sheet.
For a prospective franchisee, this indicates that Cinnaholic has existing debt obligations to related parties. While the presence of a loan itself isn't necessarily negative, it's important to understand the terms of the loan, such as the interest rate, repayment schedule, and any collateral involved. These details are not specified in the provided FDD excerpt but are important to consider.
Understanding the financial obligations of the franchisor is crucial for potential franchisees. It provides insight into the financial stability and management of Cinnaholic. A franchisee might want to inquire about the purpose of the loan, how it impacts the company's financial strategy, and whether it affects the support and resources available to franchisees.
It is also worth noting that the FDD includes additional liabilities such as 'Cinnaholic Canada' and 'Deferred Revenues' which a potential franchisee may want to investigate further to understand the full financial picture of the company.