Does Crave use the cash basis or accrual basis of accounting for its financial statements?

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

The accrual method means that Crave recognizes revenue when it is 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 are prepared using a standard and widely accepted accounting method. This can provide a level of confidence in the financial information presented in the FDD. Franchisees may want to consult with a financial advisor to fully understand the implications of the accrual method for their own business operations.