What were the contract liabilities for Crave Cookies at the end of 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 contract liabilities at the end of 2022 were $654,671. This figure represents the obligations Crave Cookies has to its franchisees or other parties as a result of existing agreements. These liabilities reflect deferred revenue or obligations to provide future services or goods.
For a prospective Crave Cookies franchisee, understanding the franchisor's contract liabilities can provide insight into the financial health and stability of the company. A high level of contract liabilities might indicate substantial future obligations, which could impact the franchisor's ability to support its franchisees or invest in the brand. Conversely, a lower level might suggest fewer outstanding commitments.
It's important for potential franchisees to consider these liabilities in the context of the overall financial picture of Crave Cookies. Reviewing the trend in contract liabilities from year to year, as well as comparing them to industry benchmarks, can offer a more comprehensive understanding of the franchisor's financial management and potential risks. Consulting with a financial advisor is recommended to fully assess the implications of these liabilities.