Do the Crave Cookies financial statements include a schedule of franchise sales?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
gain or loss on disposition is reflected in the net income in the period of disposition.
Contract liabilities - contract liabilities represent the Company's obligation to transfer goods or services to a customer when consideration has been received from the customer. These consist of deferred franchise fee revenues on the balance sheet.
Related party note payable - related party note payable represents amounts due to a related party for operating expenses and other fees that were paid on behalf of the Company. 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.
Revenue recognition - revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies FDD, the financial statements of Crave Cookies Franchising, LLC do not explicitly include a schedule of franchise sales. However, the notes to the financial statements do refer to revenue recognition related to franchise fees. Specifically, the FDD mentions that contract liabilities, which include deferred franchise fee revenues, are present on the balance sheets.
Furthermore, the FDD states that Crave Cookies recognizes revenue when control of goods or services is transferred to customers, reflecting the consideration expected in exchange for those goods or services. A portion of the proceeds from the sale of franchises is recognized as revenue when Crave Cookies has performed substantially all services for the franchise, typically upon completion of new franchise training.
While a specific schedule of franchise sales is not detailed, the FDD does address how franchise fee revenue is handled and recognized within the company's financial statements. A prospective franchisee might want to ask Crave Cookies for more detailed information on franchise sales, such as the number of franchises sold in each of the past few years, to better understand the company's growth and revenue streams.