What was the total investment in securities for Cinnaholic during the year ended December 31, 2022?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ent allows for collection of marketing fund fees, whose proceeds are restricted to brand name and franchise advertising. Any unused funds are carried forward to subsequent periods. Marketing fund fees collected and expended for the years ending December 31, 2023, and 2022 were $610,238 and $557,767, respectively.
Amounts collected but not spent at year end are not included in revenues and instead show as a marketing fund liability on the balance sheet. Marketing fund fees collected but not yet spent as of December 31, 2023, and 2022 were $0 and $10,218, respectively.
- SECURITIES HELD FOR SALE
The Company purchased publicly traded securities which as classified as current "securities held for sale" on the balance sheet o
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company's securities available for sale were valued at $88,212 as of December 31, 2022. These securities are classified as current "securities held for sale" on Cinnaholic's balance sheet. Any unrealized gains or losses from these securities are recognized each year in the company's Statement of Operations.
For a prospective Cinnaholic franchisee, this indicates that the franchisor engages in investment activities as part of its financial strategy. However, it's important to note that for the year ended December 31, 2023, Cinnaholic sold all of its security holdings and distributed the funds, resulting in a balance of $0 for securities available for sale at the end of that year. This suggests that Cinnaholic's investment strategy may change over time.
It's worth noting that the financial statements are audited by an independent auditor, Muhammad Zubairy, CPA PC, and their report expresses an opinion that the financial statements present fairly the financial position of Cinnaholic Franchising, LLC in accordance with accounting principles generally accepted in the United States of America. This provides a level of assurance regarding the accuracy and reliability of the financial information presented.
Prospective franchisees should consider these investment activities as part of their overall assessment of Cinnaholic's financial health and stability. While the company's investment in securities may not directly impact the operations of a franchise, it does provide insight into the franchisor's financial management practices and its ability to generate revenue through various means.