Does Crave Cookies charge interest on past due accounts?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
isting 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 generally does not charge interest on past due accounts. Instead, Crave Cookies writes off delinquent receivables based on individual credit evaluations and the specific circumstances of each customer.
This policy could be beneficial for franchisees as it suggests Crave Cookies is not overly aggressive in collecting overdue payments. This approach may foster better relationships with franchisees. However, it's important to note that while interest isn't charged, delinquent accounts are still written off, which could impact the franchisee's credit standing with Crave Cookies.
It is also important to note that in 2023, Crave Cookies recorded a credit loss expense of $5,000 related to doubtful accounts receivable, indicating that some accounts were deemed uncollectible. In 2022 and 2024, no such expense was recorded. Prospective franchisees should inquire about the typical range of accounts receivable and the criteria used to determine when an account is written off to fully understand the potential financial implications.