How does Crave Cookies handle the write-off of delinquent receivables?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
isting economic conditions. As of December 31, 2023 and 2022, there was no allowance for credit losses 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. During the years ended December 31, 2023 and 2022, credit loss expense related
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the company writes off delinquent receivables based on individual credit evaluations and the specific circumstances of each customer. Generally, Crave Cookies does not charge interest on past due accounts.
The FDD also states that for the year ending December 31, 2023, Crave Cookies recognized a credit loss expense of $5,000 related to doubtful accounts receivable where collectability was not reasonably assured. In contrast, no such expense was recorded for the years ending December 31, 2022 and December 31, 2024.
For a prospective Crave Cookies franchisee, this means that the franchisor assesses uncollectible accounts on a case-by-case basis. Franchisees should inquire about the typical factors considered in these credit evaluations and what specific circumstances might lead to a write-off. Understanding these criteria can help franchisees better manage their own accounts receivable and anticipate potential losses. The fact that the franchisor had a $5,000 credit loss expense in 2023, but not in 2022 or 2024, suggests that the write-off of delinquent receivables can vary.