What was the amount of Crave Cookies' contract assets at the end of the period?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
on about the Company's contract assets and liabilities from contracts with customers as of December 31, 2022 and 2021:
| Accounts receivable, beginning of period | S | - 8 | S | - 9 |
|---|---|---|---|---|
| Accounts receivable, end of period | $ | 17,607 | S | |
| Contract assets, beginning of period | S | 44,595 | S | |
| Contract assets, end of period | S | S | 44,595 | |
| Contract liabi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the contract assets at the beginning of the period were $44,595, and the contract assets at the end of the period were also $44,595.
Contract assets typically represent a company's right to receive consideration for goods or services that have been transferred to a customer when that right is conditional on something other than the passage of time. In Crave Cookies' case, this could relate to franchise fees or other services they've provided to franchisees for which payment is not yet unconditionally due.
The fact that the contract assets remained the same from the beginning to the end of the period could indicate steady performance in fulfilling obligations related to these assets. However, a prospective franchisee should seek clarification from Crave Cookies regarding the nature of these contract assets and the conditions under which they are recognized and realized. Understanding the details behind these figures is crucial for assessing the financial health and operational efficiency of the franchise system.