[Item 23: RECEIPTS]

Crave Franchising, LLC A Wyoming Limited Liability Company Notes to the Financial Statements December 31, 2024

1. Organization

Crave Franchising, LLC (the "Company") is a Wyoming limited liability company formed in February 2018. The Company was formed for the purpose of franchising restaurants nationally in the United States. The Company is owned by one individual member ("Member").

For the years ended December 31, 2024, 2023, and 2022, total capital contributions were $0, $0, and $0, respectively. For the years ended December 31, 2024, 2023, and 2022, total capital distributions were $169,340, $483,344 and $446,770, respectively.

2. Summary of significant accounting policies and nature of operations

Basis of presentation

The Company prepares its financial statements on the accrual basis of accounting consistent with accounting principles generally accepted in the United States of America.

Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and cash equivalents

Cash and cash equivalents include all cash balances on deposit with financial institutions and highly liquid investments with a maturity of three months or less at the date of acquisition.

The Company maintains its cash in bank deposit accounts which could exceed federally insured limits. The Company has not experienced an instance where cash held in the account exceeded insured limits since their inception and have not had losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Accounts receivable

Crave Franchising, LLC A Wyoming Limited Liability Company Notes to the Financial Statements December 31, 2024

2. Summary of significant accounting policies and nature of operations (continued)

Royalties receivable

Management considers receivables to be fully collectible. If amounts become uncollectible, they are charged to operations in the period in which that determination is made. Accounting principles generally accepted in the United States of America require that the allowance method be used to recognize bad debts; however, the effect of using the direct write-off method is not materially different from the results that would have been obtained under the allowance method. No write-offs were made in the reporting period.

Advertising

The Company expenses costs for advertising as the costs are incurred. Total advertising expenses for the years ended December 31, 2024, 2023, and 2022 were $50,375, $99,102 and $25,856, respectively.

3. Income taxes

Income taxes on Company income are levied on the Member at the individual level. Accordingly, all profits and losses of the Company are recognized on the Member's respective tax return. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Company to report information regarding its exposure to various tax positions taken by the Company. Management has determined whether any tax positions have met the recognition threshold and has measured the Company's exposure to those tax positions, noting none at the Company level.

3. Related party transactions

The Company has notes receivable from a related party with common ownership. These notes are noninterest bearing and are due on demand. The notes are classified as Notes Receivable – Related Parties. The amount receivable as of December 31, 2024, 2023, and 2022 was $320,387, $320,387 and $320,387, respectively.

4. Commitments and contingencies

The Company must assess if they are a party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, there are no matters of such kind, or involve such amounts, that they are aware of or require disclosure.

Report of Independent Auditors

To the Member of Crave Franchising, LLC

Opinion

We have audited the accompanying financial statements of Crave Franchising, LLC, (the Company), a Wyoming limited liability company, which comprise Balance sheet as of December 31, 2024, 2023, and 2022, and the related statement of operations and member's equity and cash flows for the year ended December 31, 2024, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the year ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

Source: Item 23 — RECEIPTS (FDD pages 63–253)