Has Crave Cookies experienced any losses in its bank deposit accounts?

According to Crave Cookies' 2025 Franchise Disclosure Document, the company has not experienced any losses in its bank deposit accounts. The FDD states that Crave Cookies maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. However, the company reports that it has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. As of December 31, 2024, Crave Cookies did not have cash balances over the federally insured limit.

This information is relevant for prospective franchisees as it provides insight into the financial management practices of Crave Cookies. Knowing that the company has not experienced losses in its bank deposit accounts can be reassuring, as it suggests that Crave Cookies is managing its cash effectively and is not taking undue risks with its cash holdings.

It's important to note that while Crave Cookies has not experienced losses in the past, there is no guarantee that it will not experience losses in the future. Economic conditions and other factors could potentially impact the company's cash holdings and its ability to avoid losses. However, the company's statement that it believes it is not exposed to any significant credit risk with respect to cash and cash equivalents suggests that it is taking steps to mitigate this risk.

For further due diligence, a prospective Crave Cookies franchisee may want to inquire about the specific banks where Crave Cookies holds its cash deposits, the amount of insurance coverage the company has, and the company's policies for managing its cash and investments.