What was the change in accounts receivable for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable
Accounts receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive. The Company provides an allowance for credit losses, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2023 and 2022, there was no allowance for credit losses recorded.
Generally, the Company does not charge interest on past due accounts. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. During the years ended December 31, 2023 and 2022, credit loss expense related
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the company addresses accounts receivable in its notes to the financial statements. For the years ending December 31, 2023 and 2022, Crave Cookies states that there was no allowance for credit losses recorded. However, the company did record a credit loss expense related to doubtful accounts receivable, where collectability is not reasonably assured.
In 2022, Crave Cookies recorded a credit loss expense of $0. This means that the company did not identify any uncollectible accounts receivable that required an allowance for credit losses during that year.
In 2023, Crave Cookies recorded a credit loss expense of $5,000. This indicates that the company recognized $5,000 in accounts receivable that were deemed uncollectible during that year. This change from $0 in 2022 to $5,000 in 2023 suggests a potential increase in credit risk or a change in the company's assessment of collectibility of its accounts receivable. A prospective franchisee should inquire about the reasons for this change and the company's policies for managing credit risk.