Do the Crave Cookies financial statements include any discussion of the impact of environmental factors?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations
Crave Cookies Franchising, LLC (the Company) formed on February 15, 2021 under the laws of the state of Utah as a Utah corporation.
The Company is a franchise company for Crave Cookies locations. The Company grants franchisees the right to operate a physical storefront location using the Crave Cookies name and marks.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable
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.
Inventories
Inventories consist of cookie boxes. Inventories are stated at the lower of cost or net realizable value. Costs of cookie boxes are determined using the first-in, first-out (FIFO) method.
Notes Receivable - Related Party
Notes receivable represent amounts due from a related party for operating expenses and other fees that the Company paid on behalf of the related party. The terms of the note are non-interest bearing and due on demand. The related party is owned 100% by the owners of the Company.
Prepaid Expenses
Prepaid expenses include prepayment for subscriptions and other prepaid expenses.
Property and Equipment
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, the provided excerpts from the financial statements do not explicitly discuss the impact of environmental factors. The notes to the financial statements primarily focus on the nature of operations, accounting policies, use of estimates, accounts receivable, inventories, related party transactions, prepaid expenses, and property and equipment. There is discussion of potential credit risks and the company's ability to continue as a going concern, but no mention of environmental considerations affecting the business.
Given the increasing importance of environmental sustainability and its potential impact on businesses, prospective Crave Cookies franchisees should inquire with the franchisor about any environmental risks or opportunities that may affect their operations. This could include factors such as waste management, energy consumption, sourcing of ingredients, and potential regulatory changes related to environmental protection.
Understanding how Crave Cookies addresses environmental issues can help franchisees make informed decisions and prepare for potential challenges or changes in the business landscape. While the financial statements may not directly address these factors, the franchisor may have other policies or strategies in place to mitigate environmental risks and promote sustainability.