Was any asset impairment recognized by Crave Cookies during the year ended December 31, 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset are less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value.
No asset impairment was recognized during the year ended December 31, 2022 or during the period from February 15, 2021 through December 31, 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, no asset impairment was recognized by the company during the year ended December 31, 2022. This means that Crave Cookies did not have to write down the value of any of its assets due to a decline in their recoverable amount during this period. This can be a positive sign for prospective franchisees, as it suggests that the company's assets are maintaining their value and the company is managing its resources effectively.
Asset impairment can occur when the value of an asset decreases significantly, often due to factors such as obsolescence, damage, or changes in market conditions. When an asset is impaired, the company must recognize a loss on its financial statements, which can negatively impact its profitability. The fact that Crave Cookies did not recognize any asset impairment in 2022 suggests that its assets were not subject to such declines in value.
It is important to note that this information is based solely on the financial statements provided in the FDD. A prospective franchisee should conduct their own due diligence and consult with a financial advisor to fully understand the company's financial condition and the potential risks and rewards of investing in a Crave Cookies franchise.