What was the total value of Cinnaholic's contract assets, net of current, as of December 31, 2024?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
ed 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 28, 2025
CINNAHOLIC FRANCHISING LLC BALANCE SHEETS
| DECE | MBER 31 | |
|---|---|---|
| 2024 | 2023 | |
| ASSETS | ||
| Current Assets | ||
| Cash | $ 54,178 | $ 42 , 590 |
| Accoun |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the total value of contract assets, net of current, as of December 31, 2024, was $732,959. This figure represents the long-term portion of contract assets that Cinnaholic expects to realize over the life of its franchise agreements. These assets typically arise from the services Cinnaholic will provide to franchisees in the future.
Contract assets, net of current, are distinct from current assets, which are expected to be converted to cash or used up within one year. The 'net of current' designation indicates that this portion of the contract assets will not be realized within the next year. For Cinnaholic, this primarily relates to the ongoing support and services they provide to franchisees over the term of their franchise agreements.
For a prospective Cinnaholic franchisee, this figure provides insight into the financial structure of the franchise system. It reflects the value Cinnaholic places on its future obligations to its franchisees. Monitoring this value over time can indicate the stability and long-term financial planning of the Cinnaholic franchise.