What was the total amount Cinnaholic received from franchise transfers in March 2025?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
eholder Investment - Lullwater Partners | 181,500.00 | | Total Shareholder Equity - Lullwater Partners | 181,500.00 | | Net Income | -15,660.14 | | Total Equity | $ -1,816,594.27 | | TOTAL LIABILITIES AND EQUITY | $2,662,016.16 |
Full Franchise Profit and Loss by Month
January - April, 2025
| JAN 2025 | FEB 2025 | MAR 2025 | APR 2025 | TOTAL | |
|---|---|---|---|---|---|
| Income | |||||
| Franchise fees | 40,000.00 | $40,000.00 | |||
| Franchise Royalties | 91,794.23 | 83,412.94 | 128,990.86 | 158,577.03 | $462,775.06 |
| Franchise Transfer | 20,000.00 | 20,0 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the total income from franchise transfers for March 2025 was $20,000. This figure is part of the broader income statement provided in the FDD, which outlines various revenue streams for Cinnaholic Franchising LLC. Franchise transfer fees represent payments made when an existing franchisee sells their franchise to a new owner, with Cinnaholic typically receiving a portion of this transaction.
For a prospective franchisee, understanding the revenue Cinnaholic generates from franchise transfers can provide insights into the stability and maturity of the franchise system. A consistent income stream from transfers might indicate a healthy market for existing Cinnaholic locations, suggesting that franchisees find value in the business and are able to sell their locations when desired. However, a high number of transfers could also signal potential issues within the franchise system, such as franchisees struggling to operate profitably or deciding to exit the business for other reasons.
It's important to note that while the FDD provides a snapshot of Cinnaholic's financials, it does not offer a complete picture of the factors driving franchise transfers. A prospective franchisee should investigate further to understand the reasons behind past transfers and assess the overall health of the franchise system. This could involve speaking with current and former franchisees, reviewing market data, and conducting thorough due diligence to evaluate the risks and opportunities associated with investing in a Cinnaholic franchise.
In addition to the franchise transfer fees, the FDD also lists other income sources such as franchise fees and royalties. These figures, along with the expenses, provide a comprehensive view of Cinnaholic's financial performance. Reviewing these financial statements is a crucial step for any potential franchisee to assess the financial viability and stability of the Cinnaholic franchise opportunity.