What was the cost of goods sold for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
f Operations
Year Ended December 31, 2022 and Period from February 15, 2021 (Inception) through December 31, 2021
| 2022 | 2021 | |
|---|---|---|
| Revenues | 59 | 500000 10 |
| Initial franchise fees | $ 412,792 | $ 10,481 |
| Product sales | 136,327 | ************************************* |
| Royalties | 110,296 | - |
| Marketing fees | 33,128 | |
| Total revenues | 692,543 | 10,481 |
| Cost of Goods Sold | 226,382 | |
| Gross Profit | 466,161 | 10,481 |
| Operating Expenses | ||
| Selling, general and administrative | 545,997 | 24,806 |
| Deprecatio |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the cost of goods sold for the company in 2022 was $226,382. This figure represents the direct costs attributable to the production of the goods sold by Crave Cookies during that year. These costs can include the expenses for raw materials, direct labor, and other direct overhead costs associated with producing the cookies.
For a prospective franchisee, understanding the cost of goods sold is crucial because it directly impacts the gross profit margin. A higher cost of goods sold will result in a lower gross profit, which in turn affects the overall profitability of the franchise. Franchisees need to carefully manage their cost of goods sold to maintain a healthy profit margin and ensure the financial sustainability of their Crave Cookies location.
It's important to note that the cost of goods sold can be influenced by various factors such as the cost of ingredients, supply chain efficiencies, and waste management. Franchisees should work closely with Crave Cookies to optimize their purchasing and production processes to minimize the cost of goods sold and maximize their profitability. Monitoring these costs regularly and comparing them against industry benchmarks can help franchisees identify areas for improvement and maintain a competitive edge.