What was the amount of Crave Cookies' contract liabilities at the beginning 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 company's contract liabilities at the beginning of the period totaled $330,419. Contract liabilities represent Crave Cookies' obligation to provide goods or services to a customer when they have already received payment. In Crave Cookies' case, these liabilities consist of deferred franchise fee revenues on the balance sheet.
For a prospective franchisee, this figure indicates the amount of revenue Crave Cookies has already collected for which they still have an obligation to provide services. This is a snapshot of Crave Cookies' financial obligations related to services or goods owed to customers at a specific point in time.
Understanding contract liabilities is crucial for assessing the financial health and obligations of Crave Cookies. A high amount of contract liabilities might suggest a strong sales pipeline but also indicates a significant future obligation to fulfill those contracts. Conversely, a low amount might suggest fewer advance payments received, which could reflect slower sales or different payment terms. Franchisees should consider these liabilities in the context of Crave Cookies' overall financial performance and growth strategy.