As of December 31, 2024, did Crave Cookies have any ongoing or threatened litigation?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time the Company is subject to lawsuits. The Company is prepared to rigorously defend itself against any such litigation. As of December 31, 2024, the Company did not have any ongoing or threatened litigation.
Due to periodic disagreements with franchisees, the Company enters into arbitration proceedings to resolve the various matters. As of December 31, 2024, the Company was in arbitration with a franchisee. While the Company believes it will receive a favorable outcome, the potential outcome has not been evaluated and is not reflected on these financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, as of December 31, 2024, Crave Cookies did not have any ongoing or threatened litigation. However, the company was in arbitration with a franchisee at that time.
Crave Cookies states that it is generally subject to claims and lawsuits that arise in the ordinary course of business. While the company believes the resolution of these won't have a material adverse effect on its financial position, this is only management's opinion, and events could occur that would change this estimate.
It is important to note that while Crave Cookies believes it will receive a favorable outcome in the arbitration with the franchisee, the potential outcome has not been evaluated and is not reflected in the financial statements. This means that the financial impact of the arbitration is uncertain and could potentially affect the company's financial position in the future. Prospective franchisees should consider this ongoing arbitration and the potential for future disputes with franchisees when evaluating the risks and benefits of investing in a Crave Cookies franchise.