What was the end of period balance for accounts receivable for Crave Cookies as of December 31, 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive. The Company provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2022 and 2021, there was no allowance for doubtful accounts 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. No bad debt expense was recorded in 2022 or 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the company states its accounts receivable at the amount of consideration from customers of which the company has an unconditional right to receive. Crave Cookies provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information, and existing economic conditions. As of December 31, 2022, there was no allowance for doubtful accounts recorded.
Crave Cookies generally does not charge interest on past due accounts. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. No bad debt expense was recorded in 2022.
For a prospective franchisee, this indicates that Crave Cookies did not have any reserves for uncollectible accounts receivable at the end of 2022. Additionally, Crave Cookies did not record any expenses related to bad debt during that year. This may reflect effective credit management or could be influenced by the company's accounting practices and the nature of its customer base.