What was the total amount of SBA loan payable for Cinnaholic as of December 31, 2022?
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 |
| Related party payable | 377,838 | 316,838 |
| SBA loan payable | - | 3,266 |
| Advertising fund liability | - | 10,218 |
| Contract liability | 64 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, as of December 31, 2022, the total SBA loan payable was $3,266, with an additional $145,046 listed as SBA loan payable, net of current. This indicates Cinnaholic had both a current and a long-term portion of the SBA loan outstanding at that time. The current portion represents the amount due within the next year, while the net of current portion represents the amount due beyond the next year.
For a prospective Cinnaholic franchisee, this information provides insight into the company's debt obligations and financial structure. Understanding the SBA loan payable amounts can help in assessing the financial health and stability of the franchisor. It's important to note that these figures reflect the financial position at a specific point in time and may have changed since then.
It is also important to note that the FDD includes an independent auditor's report stating that the financial statements present fairly the financial position of Cinnaholic Franchising, LLC as of December 31, 2023, and 2022. This opinion suggests that the financial information provided is reliable and has been audited in accordance with generally accepted accounting principles in the United States of America.
Prospective franchisees should review these financial statements carefully and consider consulting with a financial advisor to fully understand the implications of Cinnaholic's debt obligations and overall financial condition. This due diligence will aid in making an informed decision about investing in a Cinnaholic franchise.