What was the total amount of Cinnaholic's related party payable liabilities 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 total amount of related party payable liabilities as of December 31, 2023, was $377,838. This indicates the amount Cinnaholic owed to related parties or companies with common ownership at that time. These advances are typically without interest and payable upon demand.
For a prospective franchisee, understanding related party transactions is crucial. It's important to assess the nature of these relationships and how they might impact the financial stability and operations of Cinnaholic. Related party payables can be a normal part of business, but it's essential to ensure that these transactions are conducted fairly and transparently.
Franchisees should inquire about the details of these related party transactions, including the identities of the related parties, the terms of the advances, and the purpose for which the funds were used. This due diligence will help a franchisee understand the financial structure of Cinnaholic and potential risks or benefits associated with these relationships.