What were the borrowings on related-party note for Crave Cookies in 2023?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
5)_ | | Owner distributions | (299,129) | | Net loss | (444,708) | | Balance, December 31, 2023 | $ (1.184,312) |
| 2023 | 2022 | |||
|---|---|---|---|---|
| Operating Activities | ||||
| Net loss | $ | (444,708) | S | (84,420) |
| Items not requiring (providing) cash | 31 LMLN | |||
| Depreciation | 7,844 | 4,584 | ||
| Non-cash operating lease expense | 9,987 | 8,042 | ||
| Provision for credit losses on accounts receivable | 5,000 | |||
| Changes in | ||||
| Accounts receivable | (87,392) | (17,607) | ||
| Inventory | (6,721) | 14,319 | ||
| Prepaid expenses | 31,830 | (33,205) | ||
| Contract assets | . 30 | 44,595 | ||
| Accounts payable and accrued expenses | 118,529 | 32,788 | ||
| Lease liability | (10,310) | (7,719) | ||
| Contract liabilities | - | 624,470 | _ | 324,252 |
| Net cash provided by operating activities | - | 248,529 | _ | 285,629 |
| Investing Activities | ||||
| Purchase of property and equipment | (16,931) | (16,064) | ||
| Repayments on related-party note | 113,332 | 170,400 | ||
| Borrowings on related-party note | _ | (47,416) | (114,471) | |
| Net cash provided by investing activities | 48,985 | 39,865 | ||
| Financing Activity | ||||
| Owners distributions | (299,129) | (178,454) | ||
| Net cash used in financing activity | (2) | (299,129) | (178,454) | |
| Change in Cash | (1,615) | 147,040 | ||
| Cash, Beginning of Year | _ | 181,217 | 34,177 | |
| Cash, End of Year | $ | 179,602 | $ | 181,217 |
| Non-cash Supplemental Cash Flow Information | ||||
| Accrued expense converted into a | ||||
| note receivable - related party | $ | - E | S | 9,026 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the borrowings on the related-party note in 2023 were $(47,416). This indicates that Crave Cookies received $47,416 from a related party through a note.
In the context of franchise financial statements, related-party transactions are common. These transactions must be disclosed to provide transparency about potential conflicts of interest. A related-party note signifies a financial arrangement between Crave Cookies and an entity closely associated with it, such as its owners or subsidiaries.
For a prospective franchisee, this information is useful for assessing the financial relationships Crave Cookies has with its related parties. It is important to understand the terms of these notes, including interest rates and repayment schedules, to evaluate the overall financial health and stability of the company. Reviewing these transactions can provide insights into the company's financial strategies and its reliance on related parties for funding or other resources.