What was the credit loss expense related to doubtful accounts receivable for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
nt 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's 2025 Franchise Disclosure Document, the credit loss expense related to doubtful accounts receivable was $0 in 2022. This means that Crave Cookies did not record any expenses for potential uncollectible accounts receivable during that year.
For a prospective franchisee, this indicates that Crave Cookies has been effective in collecting its receivables or has not extended credit terms that resulted in doubtful accounts during 2022. This could reflect well on the brand's financial management and the creditworthiness of its franchisees or customers.
It's important to note that while no credit loss expense was recorded in 2022, the company did record $5,000 in credit loss expense in 2023. This suggests that the company's experience with uncollectible accounts can vary from year to year, and franchisees should be aware of this potential fluctuation.