What was the amount of Crave Cookies' contract liabilities at the end of the period?

Based on the 2025 Crave Cookies Franchise Disclosure Document, contract liabilities represent the company's obligation to provide goods or services to a customer when they've already received payment. For Crave Cookies, these liabilities primarily consist of deferred franchise fee revenues recorded on the balance sheet. This means that when Crave Cookies receives a franchise fee, they don't immediately recognize it as revenue. Instead, they initially record it as a liability, acknowledging their obligation to provide the services and support associated with the franchise agreement. As Crave Cookies fulfills these obligations over time, they gradually recognize the deferred revenue as earned revenue on their income statement.

For a prospective Crave Cookies franchisee, understanding contract liabilities is crucial because it reflects the franchisor's financial stability and how they account for franchise fees. A significant amount in contract liabilities suggests that Crave Cookies has a substantial pipeline of future revenue from franchise fees, but it also indicates their ongoing commitment to support new franchisees. This deferred revenue model aligns the franchisor's incentives with the success of their franchisees, as they only recognize the revenue as they provide support and services.

However, the provided excerpts from the FDD do not specify the exact dollar amount of Crave Cookies' contract liabilities at the end of any particular period. While the document explains what contract liabilities are and how they are treated, it does not include the specific figures from the financial statements. Therefore, a prospective franchisee would need to review the complete financial statements within the FDD or request this information directly from Crave Cookies to assess the magnitude of these liabilities and their potential impact on the company's financial health.