What was the amount of cash paid for amounts included in the measurement of lease liabilities for Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ive Disclosures
The lease cost and other required information for the years ended December 31, 2023 and 2022, are:
| - | 2023 | - | 2022 | |
|---|---|---|---|---|
| Lease cost | ||||
| Operating lease cost | $ | 9,987 | $ | 8,042 |
| Total lease cost | $ | 9,987 | $ | 8,042 |
| Other information |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the cash paid for amounts included in the measurement of lease liabilities was $6,914 in 2023 and $7,719 in 2022. This figure represents the actual cash outflow related to lease obligations during those years. Lease liabilities are initially recognized based on the present value of future lease payments, but this disclosure reflects the cash payments made against those liabilities.
For a prospective Crave Cookies franchisee, understanding these cash payments is crucial for budgeting and financial planning. While the total lease cost reflects the expense recognized on the income statement, the cash paid amount indicates the actual funds that must be available to cover lease obligations. This distinction is important because the total lease cost can include non-cash items such as amortization of right-of-use assets.
The FDD provides a breakdown of lease costs and related cash payments, allowing potential franchisees to assess the company's leasing practices and their impact on cash flow. Reviewing these figures over multiple years can reveal trends and provide insights into how Crave Cookies manages its lease obligations. This information is particularly relevant for franchisees who may also need to enter into lease agreements for their own store locations.
It is important to note that these figures pertain to Crave Cookies Franchising, LLC's corporate leases and may not directly reflect the leasing costs that a franchisee would incur. However, understanding the franchisor's approach to leasing and its historical cash payments can inform a franchisee's own lease negotiations and financial planning.