What was the total amount of Cinnaholic's contract liability, net of current, as of December 31, 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA PC
Westbury, NY
April 4, 2024
CINNAHOLIC FRANCHISING LLC BALANCE SHEETS
| DECE | MBER 31 | |
|---|---|---|
| 2023 | 2022 | |
| ASSETS | ||
| Current Assets | ||
| Cash | $ 42,590 | $ 264,588 |
| Securities held for sale | - | 88,212 |
| Accounts Receivable | 188,000 | 282,821 |
| Prepaid asset | 536,157 | 434,231 |
| Due from franchisee | 1,500 | 1,500 |
| Contract assets | 145,664 | 132,139 |
| Total Current Assets | 913,911 | 1,203,491 |
| Contract assets-net of current | 826,565 | 843,747 |
| Total Assets | $ 1,740,476 | $ 2,047,238 |
| LIABILITIES AND MEMBER: | S' (DEFICIT) | |
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 117,649 | $ 129,897 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company's contract liability, net of current, as of December 31, 2023, was not explicitly listed.
However, the balance sheet as of December 31, 2023, does include a line item for "Contract liability" under current liabilities, which amounted to $647,841. There is also a line item for "Deferred Revenues" under long-term liabilities, which amounted to $2,632,111.
To fully understand Cinnaholic's financial obligations, a prospective franchisee should request a complete and detailed balance sheet from the franchisor. This will clarify the breakdown of current and non-current contract liabilities and provide a clearer picture of the company's overall financial health.