Do the Crave Cookies financial statements include any projections of future performance?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the financial statements of Crave Cookies Franchising, LLC, which comprise the balance sheet as of December 31, 2024, and the related statements of income, members' equity, and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Crave Cookies Franchising, LLC as of December 31, 2024 and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts from Crave Cookies' financial statements do not include any explicit projections of future performance. The financial statements included are the balance sheet as of December 31, 2024, and the related statements of income, members' equity, and cash flows for the year then ended, along with notes. The independent auditor's report expresses an opinion on the fair presentation of the company's financial position as of that date and the results of its operations and cash flows for the year then ended.
While the financial statements provide a historical view of Crave Cookies' financial performance, they do not contain forward-looking projections. The notes to the financial statements discuss accounting policies, use of estimates, accounts receivable, and other standard financial reporting elements, but do not present any forecasts or predictions of future revenues, expenses, or profitability. The auditors' responsibilities include evaluating the reasonableness of management's significant accounting estimates but do not extend to auditing or attesting to any projected financial information.
Prospective franchisees should be aware that the FDD does not offer any financial projections from the franchisor. Therefore, it is crucial for potential investors to conduct their own independent financial analysis and due diligence, potentially including creating their own projections based on the historical data provided and their own market research. It would be prudent to ask Crave Cookies directly if they have any internal projections or if they can provide additional data to support a franchisee's financial planning.
In the absence of franchisor-provided projections, a potential Crave Cookies franchisee should consider consulting with a financial advisor to develop realistic and well-supported financial forecasts for their specific location and circumstances. This will help in making an informed investment decision and managing the financial risks associated with opening a franchise.