What was the total amount of related party payable for Cinnaholic as of December 31, 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
$32,921, respectively. Future minimum lease payments under the lease total $37,210, of which $31,858 is due during the year ending December 31, 2022, and $5,352 is due during the year ending December 31, 2023. Starting from March 2023, the minimum rent is $2,757 monthly.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the balance due to a related party as of December 31, 2023, was $377,838. These advances from related parties or companies with common ownership bear no interest and are payable upon demand.
For a prospective Cinnaholic franchisee, this indicates the company's financial interactions with related parties. Balances due to related parties can fluctuate year to year, as seen by the $520,959 due on December 31, 2024.
Understanding the nature and terms of these related party transactions is important for assessing the financial health and stability of Cinnaholic. A franchisee should seek clarification from Cinnaholic regarding the specifics of these transactions, including the identities of the related parties and the purposes for which the advances were made.