What was the operating income (loss) for Crave in the first period?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
fect 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 b
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Crave Franchising, LLC's financial statements include a statement of operations. However, the excerpt only provides the audit opinion and notes to the financial statements. The specific operating income or loss for any particular period (such as the "first period") is not disclosed in this section.
Instead, the notes discuss accounting policies, revenue recognition, advertising expenses, and related party transactions. For example, advertising expenses for the years ended December 31, 2024, 2023, and 2022 were $50,375, $99,102 and $25,856, respectively. Initial franchise fees billed were $485,000, $725,000, and $795,000 for the same years. These figures offer insight into revenue streams and expenses but do not detail the operating income.
A prospective franchisee should request the full financial statements, including the statement of operations, from Crave to understand the company's profitability and financial performance over specific periods. This will provide a clearer picture of the company's financial health and trends.