How are delinquent receivables written off by Crave Cookies?
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. Delinquent receivables are written off based on individual credit evaluations and the specific circumstances of the customer.
For the year ending December 31, 2023, Crave Cookies reported a credit loss expense of $5,000 related to doubtful accounts receivable where collectability was not reasonably assured. In contrast, no such expense was recorded for the years ending December 31, 2024, and December 31, 2022.
This means that Crave Cookies assesses each overdue account individually to determine if it should be written off, considering the customer's credit history and situation. The fact that there was a $5,000 credit loss in 2023, but none in 2022 and 2024, suggests that the write-off of delinquent receivables can vary from year to year.