What were the total receipts for Crave for the year ending December 31, 2024?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
ificant accounting policies and nature of operations (continued)
Deferred franchise fee revenue are expected to be amortized over the remaining term of the associated franchise agreement as follows:
| Year ending December 31, 2024: | Amount | |
|---|---|---|
| 2025 | $ | 925,000 |
| 2026 | - | |
| 2027 | - | |
| 2028 | - | |
| 2029 | - | |
| Thereafter | _ | - |
| Total | $_ _ | 925,000 |
| Year ending December 31, 2023: | Amount | |
| 2024 | $ | 935,000 |
| 2025 | - | |
| 2026 | - | |
| 2027 | - | |
| 2028 | - | |
| Thereafter | _ | - |
| Total | $_ | 935,00 |
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the receipts table shows projected amortization of deferred franchise revenue. For the year ending December 31, 2024, the projected amortization for 2025 is $925,000. This figure represents the amount of deferred revenue that Crave expects to recognize as actual revenue in the upcoming year (2025) related to franchise agreements already in place as of the end of 2024.
It is important to understand that this $925,000 does not represent the total revenue Crave earned during 2024. Instead, it is the portion of previously collected franchise fees that will be recognized as revenue in 2025. The FDD also shows that for the year ending December 31, 2023, the projected amortization for 2024 was $935,000, and for the year ending December 31, 2022, the projected amortization for 2023 was $1,225,000.
Prospective franchisees should note that these figures relate to the franchisor's revenue recognition from franchise fees, not the sales or revenue of individual franchise locations. Understanding the franchisor's revenue streams and how they are accounted for can provide insight into the financial health and stability of the Crave franchise system. Franchisees earn revenue through their own sales to customers.
To get a full picture of Crave's financial performance, a prospective franchisee should review the complete financial statements included in the FDD and consult with a financial advisor. It would be beneficial to ask Crave for their total revenue for the year ending December 31, 2024, to understand the overall financial performance of the company, not just the amortization of deferred revenue.