What is the total reported amount of Cinnaholic's Deferred Revenues?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Current Assets | $2,487,071.19 | | Other Assets | | | Accounts Receivable - Accrual | 174,944.79 | | Inter-Company Receivable Athens | 0.00 | | Notes Receivable - F4 Investments | 0.18 | | Total Other Assets | $174,944.97 | | TOTAL ASSETS | $2,662,016.16 |
Balance Sheet As of April 30, 2025
| TOTAL | |
|---|---|
| LIABILITIES AND EQUITY | |
| Liabilities | |
| Current Liabilities | |
| Other Current Liabilities | |
| Accounts Payable Accrual | 13,282.0 |
| Advertising Fund Liability | 10,218.00 |
| Deferred revenues - ST | 1,013,889.00 |
| Direct Deposit Payable | 0.0 |
| Gift Cards | 7,370.7 |
| Interest Payable | 10,661.00 |
| Loan from On Deck | 0.00 |
| Loan from SBA | 0.00 |
| Payroll Liabilities | 295,119.69 |
| Total Other Current Liabilities | $1,350,540.43 |
| Total Current Liabilities | $1,350,540.43 |
| Long-Term Liabilities | |
| Cinnaholic Canada | 440,959.00 |
| Deferred Revenues | 2,632,111.00 |
| Loan from Canada | 0.00 |
| Notes Payable | 0.00 |
| Loan from Daryl Dollinger | 55,000.00 |
| Total Notes Payable | 55,000.00 |
| Total Long-Term Liabilities | $3,128,070.00 |
| Total Liabilities | $4,478,610.43 |
| Equity | |
| Equity Correction Account | -0.02 |
| Opening Balance Equity | 9.84 |
| Other Comprehensive Income | 0.49 |
| Retained Earnings | -1,506,115.4 |
| Shareholder Distribution - Daryl I Dollinger | -113,696.00 |
| Shareholder Distribution - Florian Radke | -105,361.0 |
| Shareholder Distribution - Spencer Reid | -170,750.0 |
| Shareholder Distributions |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the company has both short-term and long-term deferred revenues. Short-term deferred revenues are reported as $1,013,889.00, while long-term deferred revenues are reported as $2,632,111.00. The sum of these amounts represents the total deferred revenues for Cinnaholic.
Deferred revenue typically represents payments Cinnaholic has received for goods or services that have not yet been fully delivered or earned. In the case of a franchise, this often includes initial franchise fees that are recognized over the term of the franchise agreement. The short-term portion represents revenue expected to be recognized within the next year, while the long-term portion extends beyond that.
For a prospective Cinnaholic franchisee, understanding deferred revenue is important because it reflects the financial obligations Cinnaholic has to its franchisees. It also provides insight into how Cinnaholic recognizes revenue over time, which can affect its financial performance and stability. Reviewing these figures in the context of Cinnaholic's overall financial statements can offer a more complete picture of the company's financial health.
It is important to note that these figures are as of a specific date (likely December 31, 2024, based on the surrounding context in the FDD) and may change over time. A potential franchisee should review the most current financial statements and discuss any questions or concerns with a financial advisor.