What was the amount of Crave's accounts payable under current liabilities in the first period presented?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current liabilities: | |||
|---|---|---|---|
| Accounts payable | $ 159,707 | $ 54,648 | $ 36,368 |
| Accrued payroll | 20,982 | 7,292 | 8,104 |
| Other current liabilities | 36,262 | 1,109 | - |
| Deferred revenue - franchise | |||
| sales, current portion | 925,000 | 935,000 | 1,225,000 |
| Total current liabilities | 1,141,951 | 998,049 | 1,269,472 |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the accounts payable under current liabilities for the first period presented, which is December 31, 2022, was $36,368. This figure represents the amount Crave owed to its suppliers and other creditors for short-term obligations at the end of that accounting period.
Accounts payable is a crucial metric for franchisees to monitor because it reflects the company's short-term financial health and its ability to manage its obligations. A high accounts payable balance relative to its assets could indicate that Crave is struggling to pay its bills on time, which could potentially impact its relationships with suppliers and its overall creditworthiness.
Conversely, a very low accounts payable balance might suggest that Crave is not taking advantage of available credit terms or is paying its bills too quickly, which could affect its cash flow management. Therefore, understanding the accounts payable trends and comparing them to industry benchmarks is essential for assessing the financial stability of Crave.