How are accounts receivable stated for Crave Cookies?

According to Crave Cookies' 2025 Franchise Disclosure Document, accounts receivable are recorded at the amount of consideration expected from customers, representing the company's unconditional right to receive payment. Crave Cookies assesses the collectibility of these receivables by providing an allowance for credit losses, which is determined through a review of outstanding balances, historical collection data, and current economic conditions. As of December 31, 2024, no allowance for credit losses was recorded.

Crave Cookies generally does not charge interest on overdue accounts. Instead, delinquent receivables are written off based on individual credit evaluations and the specific circumstances of each customer. For the year ended December 31, 2024, there was no credit loss expense recorded for doubtful accounts receivable where collectibility was not reasonably assured.

For a prospective Crave Cookies franchisee, this accounting policy indicates that the franchisor takes a proactive approach to managing and evaluating its accounts receivable. The absence of recorded credit losses in 2024 suggests effective credit management and timely collections. However, the potential for write-offs of delinquent receivables based on individual circumstances means that franchisees should also focus on sound credit evaluation practices when dealing with their own customers to minimize potential losses.