What was the total amount of Cinnaholic's accounts payable and accrued expenses as of December 31, 2024?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| 71,199 | (331,695) | |||
|---|---|---|---|---|
| Members' (Deficit) - Beginning | (2,290,083) | (2,025,527) | ||
| Members' Contributions (Distributions) | 108,591 | 67,139 | ||
| Members' (Deficit) - Ending | $ (1,710,293) | $ (2,290,083) | # CINNAHOLIC FRANCHISING LLC STATEMENTS OF CASH FLOWS |
| YEARS ENDED | DECEMBER 31 | ||
|---|---|---|---|
| 2024 | 2023 | ||
| Operating Activities | |||
| Net (Loss) | $ 471,199 | $ (331,695) | |
| Adjustments to reconcile net (loss) to net cash | 3 471,133 | 3 (331,033) | |
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Due from franchisee | 1,500 | _ | |
| Accounts Receivable | - | 94,821 | |
| Prepaid Expenses | 117,143 | (101,926) | |
| Investments (securities) | - | 88,212 | |
| Contract Assets | 87,346 | 3,657 | |
| Accounts payable and accrued expenses | (110,381) | (12,248) | |
| Related party payable | 143,121 | 61,000 | |
| Advertising fund liability | (10,218) | ||
| Contract Liabilities | (806,931) (97,003) (27)2227 | 67,572 (140,825) (2.0,020) | |
| Financing Activities | |||
| SBA loan payments | (148,312) | ||
| Investing Activities |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company's accounts payable and accrued expenses as of December 31, 2024, were $(110,381). This figure represents the total short-term liabilities Cinnaholic had outstanding to its suppliers, vendors, and other creditors at the end of the year. It is important to note that this value is presented as a negative number in the provided statement.
For a prospective Cinnaholic franchisee, understanding accounts payable and accrued expenses is crucial because it reflects the company's short-term financial obligations. A higher accounts payable balance might indicate that Cinnaholic is taking longer to pay its bills, which could be a sign of financial strain. Conversely, a lower balance could suggest efficient management of short-term liabilities. However, in this case, the negative value requires further investigation to understand its implications fully.
It is essential for potential franchisees to review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of Cinnaholic's financial health. This includes analyzing the trends in accounts payable and accrued expenses over several years, comparing these figures to industry benchmarks, and assessing the overall impact of these liabilities on Cinnaholic's profitability and cash flow. Understanding these factors will help franchisees make informed decisions about their investment and assess the financial stability of the franchise system.