What were the borrowings on notes receivable from a related party for Crave Cookies in 2021?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
of Cash Flows
Year Ended December 31, 2022 and Period from February 15, 2021 (Inception) through December 31, 2021
| 2022 | 2021 | |||
|---|---|---|---|---|
| Operating Activities | 107 | 720 | ||
| Net loss | S | (84,420) | $ | (14,725) |
| Items not requiring (providing) cash | 100 | |||
| Depreciation | 4,584 | 400 | ||
| Non-cash operating lease expense | 8,042 | - | ||
| Changes in | ||||
| Accounts receivable | (17,607) | 50 m | ||
| Inventory | 14,319 | (21,515) | ||
| Prepaid expenses | (33,205) | |||
| Contract assets | 44,595 | (44,595) | ||
| Accounts payable and accrued expenses | 32,788 | 17,176 | ||
| Lease liability | (7,719) | 7 | ||
| Contract liabilities | - | 324,252 | 8 | 330,419 |
| Net cash provided by operating activities | 285,629 | 10 | 267,160 | |
| Investing Activities | ||||
| Purchase of property and equipment | (16,064) | (7,208) | ||
| Repayments on notes receivable - related party | 170,400 | |||
| Borrowings on notes receivable - related party | - | (114,471) | _ | (62,899) |
| Net cash provided by (used in) investing activities | _ | 39,865 | 8 | (70,107) |
| Financing Activities | ||||
| Owners distributions | _ | (178,454) | ): | (162,876) |
| Net cash used in financing activities | 3 | (178,454) | (162,876) | |
| Change in Cash | 147,040 | 34,177 | ||
| Cash, Beginning of Period | 2 | 34,177 | 70 | |
| Cash, End of Period | s | 181,217 | s | 34,177 |
| Non-cash Supplemental |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the borrowings on notes receivable from a related party in 2021 were $(62,899). This indicates the company received cash from a related party through a note receivable.
For a prospective franchisee, this detail provides insight into Crave Cookies's financial transactions with related parties. It's important to note that these notes are with parties related to the owners of Crave Cookies, suggesting a close financial relationship. The notes are non-interest bearing and due on demand.
Understanding these related-party transactions is crucial for assessing the overall financial health and stability of Crave Cookies. Franchisees should inquire about the nature of these transactions, the repayment history, and the potential impact on the company's financials. This information can help in evaluating the financial risks and opportunities associated with investing in a Crave Cookies franchise.