On what basis of accounting does Crave prepare its financial statements?

According to Crave's 2025 Franchise Disclosure Document, the company prepares its financial statements using the accrual basis of accounting. This method is consistent with accounting principles generally accepted in the United States of America.

The accrual basis of accounting means that Crave recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash changes hands. This provides a more accurate picture of the company's financial performance over a period of time, as it matches revenues with the expenses incurred to generate those revenues.

For a prospective franchisee, this indicates that Crave's financial statements aim to provide a clear and reliable view of its financial position and performance, adhering to standard accounting practices. Understanding the accrual basis can help franchisees better interpret the financial information provided in the FDD and assess the financial health of the franchisor.