What is the reported amount of Cinnaholic's total long-term liabilities?

According to Cinnaholic's 2025 Franchise Disclosure Document, the company's total long-term liabilities are reported as $3,128,070.00 as of December 31, 2023. This figure is composed of several specific liabilities, including $440,959.00 related to Cinnaholic Canada, $2,632,111.00 in deferred revenues, and $55,000.00 in total notes payable which is specified as a loan from Daryl Dollinger. There is also a $0.00 balance for a loan from Canada and notes payable.

For a prospective Cinnaholic franchisee, understanding the composition and nature of these long-term liabilities is crucial. Deferred revenues, for example, likely represent franchise fees collected for which Cinnaholic has not yet provided the associated services or fulfilled its obligations. The loan from Daryl Dollinger and the liabilities to Cinnaholic Canada indicate financial obligations to related parties, which could influence the company's financial strategies and decisions.

It is important to note that the presence of substantial long-term liabilities does not inherently indicate financial instability, but it does warrant careful consideration. A potential franchisee should assess how these liabilities might affect Cinnaholic's ability to support its franchisees, invest in marketing and innovation, and maintain the overall health of the franchise system. Reviewing the trend of these liabilities over time and comparing them to industry benchmarks can provide further insights into the financial management and stability of Cinnaholic.