How much did the owners distribute from Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4, | 584 | | Total operating expenses | | 1,411,061 | 550, | 581 | | Net Loss | s | (444,708) $ | (84. | 420 |
| Balance, January 1, 2022 | $ (177,601) |
|---|---|
| Owner distributions | (178,454) |
| Net loss | (84,420) |
| Balance, December 31, 2022 | (440,4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the owners' distributions from the company in 2022 totaled $178,454. This information is derived from the statement of changes in members' equity, which tracks how the equity in the company changes over time due to factors like net income/loss and distributions to owners. The balance on January 1, 2022 was a deficit of $177,601, which increased to a deficit of $440,475 by December 31, 2022. This change reflects the owner distributions and a net loss of $84,420 during the year.
For a prospective Crave Cookies franchisee, this indicates how the owners are taking money out of the business. Owner distributions are not necessarily a bad thing, but it is important to consider them in the context of the company's overall financial performance. A high level of distributions coupled with net losses could indicate that the company is not reinvesting enough profits back into the business for growth and stability.
It's also worth noting that owner distributions are typically discretionary, meaning the owners can decide how much to take out of the business each year. This can vary based on the company's performance, the owners' personal financial needs, and other factors. A potential franchisee should inquire about the franchisor's distribution policy and how it aligns with the long-term financial health of the company. Understanding these distributions can provide insight into the financial management and priorities of Crave Cookies's leadership.