What were the advertising expenses recorded by Crave Cookies for its franchisees in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Adoption of the standard did not have significant impact on the financial statements.
Advertising Expenses
The Company recorded advertising expenses for the franchisees of approximately $477,000 and $150,000 in 2023 and 2022, respectively. A
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the company recorded advertising expenses for its franchisees of approximately $150,000 in 2022. This figure represents the total advertising expenses incurred by Crave Cookies on behalf of all its franchisees during that year.
This information is relevant for prospective franchisees as it provides insight into the level of investment Crave Cookies is making in advertising and marketing to support its franchise network. These expenses are included within selling, general, and administrative expenses on the company's statements of operations.
Understanding the franchisor's advertising expenses can help a potential franchisee assess the brand's marketing efforts and the support they can expect to receive in terms of brand awareness and customer acquisition. It's important to note that this figure reflects expenses incurred by the franchisor, and franchisees may also be required to contribute to advertising funds or conduct local marketing activities separately.