What was the value of securities available for sale held by Cinnaholic as of December 31, 2022?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 held securities available for sale valued at $88,212 as of December 31, 2022. These securities are classified as current "securities held for sale" on Cinnaholic's balance sheet.
The FDD also states that Cinnaholic recognizes unrealized gains or losses on these securities each year in its Statement of Operations. This means that the value of these securities can fluctuate and impact the company's reported profits or losses.
For the year ending December 31, 2023, Cinnaholic sold all of its security holdings and distributed the funds. This indicates a change in the company's investment strategy, as it no longer holds these types of securities. A prospective franchisee should consider Cinnaholic's investment strategies and how they might impact the financial stability of the company.