What is management responsible for designing, implementing, and maintaining regarding internal control for Crave Cookies' financial statements?

According to Crave Cookies' 2025 Franchise Disclosure Document, management is responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the company's financial statements. This responsibility ensures that the financial statements are free from material misstatements, whether due to fraud or error, and are presented in accordance with accounting principles generally accepted in the United States of America. This responsibility is a standard practice for companies to ensure the accuracy and reliability of their financial reporting.

Specifically, Crave Cookies' management must establish and maintain an internal control system that ensures transactions are properly authorized, recorded, and reported. This includes controls over assets to prevent unauthorized acquisition, use, or disposition, and controls over liabilities to ensure they are properly incurred and recorded. The effectiveness of these controls directly impacts the reliability of the financial data presented to potential investors, lenders, and franchisees.

Prospective Crave Cookies franchisees should understand that the franchisor's financial stability and reporting practices are crucial for assessing the overall health and sustainability of the franchise system. A well-maintained internal control system indicates that the franchisor takes its financial responsibilities seriously, which can provide a level of comfort to franchisees who are considering investing in the brand. Franchisees may want to inquire about the specific internal controls in place and the processes used to monitor their effectiveness.