What was the total rent expense incurred by Cinnaholic in 2023?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
nd $610,238, 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, 2024 and 2023 were $0 and $0, respectively.
6. OPERATING LEASES
The Company leases office space under an operating lease that expires on February 28, 2023. Total rent expense incurre
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company's total rent expense incurred in 2023 was $33,908. The FDD also notes that in 2022, the total rent expense was $32,921. The company leases office space under an operating lease that expired on February 28, 2023.
Additionally, the FDD specifies future minimum lease payments under the lease totaled $37,210, of which $31,858 was due during the year ending December 31, 2022, and $5,352 was due during the year ending December 31, 2023. Starting in March 2023, the minimum rent was $2,757 monthly.
For a prospective franchisee, this indicates the historical rent expenses for Cinnaholic's office space. However, it's important to note that the lease expired in February 2023, and the minimum rent changed starting in March 2023. This information is useful for understanding the company's past financial obligations related to office space, but may not be indicative of future rent expenses, especially if Cinnaholic has secured a new lease with different terms.