What was the beginning accounts receivable for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ut the Company's contract assets and liabilities from contracts with customers as of December 31, 2023 and 2022:
| 2023 | 2022 | |
|---|---|---|
| Accounts receivable, beginning of year | $ 17,607 | $ - |
| Accounts receivable, end of year | $ 99,999 | $ 17,607 |
| Contract assets, beginning of year | $ 2 | $ 44,595 |
| Contract assets, end of year | $ | $ |
| Contract liabili |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the beginning accounts receivable for 2022 was $0. This figure represents the amount of money owed to Crave Cookies by its customers at the start of the 2022 fiscal year.
For a prospective franchisee, understanding the accounts receivable is crucial as it reflects the company's efficiency in collecting payments. A low or zero beginning accounts receivable suggests that Crave Cookies either collects payments promptly or has a minimal amount of outstanding invoices at the start of the year.
This information is part of the broader financial health assessment that a potential franchisee should undertake. While a zero balance might seem positive, it's important to also consider the credit loss expense. The FDD notes that there was no credit loss expense recorded in 2022, which aligns with the zero beginning accounts receivable. This could indicate effective credit management or a business model that minimizes outstanding receivables.