Do the Crave Cookies financial statements include any related party transactions?

According to the 2025 Crave Cookies Franchise Disclosure Document, the financial statements do include related party transactions. Specifically, the company has "Notes Receivable - Related Party," representing amounts due from a related party for operating expenses and other fees that Crave Cookies paid on their behalf. The terms of this note are non-interest bearing and due on demand, and the related party is owned 100% by the owners of Crave Cookies. This indicates financial transactions between Crave Cookies and entities closely connected to its ownership. Also, Crave Cookies has no material related-party leases.

Additionally, the financial statements include related party receivables and payables. Total related party receivables amount to $21,919, including $20,919 from Crave Draper, LLC and $1,000 from Crave Cookies, LLC. Total related party payables amount to $99,435, all due to Crave Midvale, LLC. These figures show the extent of financial interactions between Crave Cookies Franchising, LLC and its related entities.

For a prospective franchisee, these related party transactions are important to note. While not inherently problematic, they require careful scrutiny to ensure that the transactions are conducted at arm's length and do not unfairly benefit the franchisor or related parties at the expense of the franchisees. Understanding the nature and terms of these transactions is crucial for assessing the financial health and stability of Crave Cookies.