What was the total amount due from franchisee for Cinnaholic as of December 31, 2022?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| YEARS ENDED | DECEMBER 31 | ||
|---|---|---|---|
| 20232022 | |||
| Operating Activities | |||
| Net (Loss) | $ (331,695) | $ (562,616) | |
| Adjustments to reconcile net (loss) to net cash | |||
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Due from franchisee | - | (1,500) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the amount due from franchisees as of December 31, 2022, was ($1,500). This figure is derived from the financial statements included in the FDD, which provide a snapshot of Cinnaholic's financial performance and position at the end of the specified year. The amount listed as 'Due from franchisee' reflects the outstanding balances owed to Cinnaholic by its franchisees. This amount is a component of the overall changes in assets and liabilities that Cinnaholic experienced during the year.
For a prospective Cinnaholic franchisee, understanding the 'Due from franchisee' figure can provide insights into the financial interactions between Cinnaholic and its franchisees. A negative value, as in this case, could indicate a net payment from Cinnaholic to its franchisees or adjustments related to previous overpayments or credits. It is important to note that this figure represents the aggregate amount across all franchisees and does not reflect the financial standing of any individual franchise unit.
It is also important to consider this figure in conjunction with other financial data presented in Cinnaholic's FDD, such as accounts receivable, prepaid expenses, and deferred franchise fees, to gain a comprehensive understanding of Cinnaholic's financial health and its relationships with its franchisees. Reviewing these figures over multiple years, as presented in the FDD, can reveal trends and potential areas of concern or opportunity for both Cinnaholic and its franchisees.