What was the net loss for Crave Cookies in 2021?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
f Operations
Year Ended December 31, 2022 and Period from February 15, 2021 (Inception) through December 31, 2021
| 2022 | 2021 | |
|---|---|---|
| Revenues | 59 | 500000 10 |
| Initial franchise fees | $ 412,792 | $ 10,481 |
| Product sales | 136,327 | ************************************* |
| Royalties | 110,296 | - |
| Marketing fees | 33,128 | |
| Total revenues | 692,543 | 10,481 |
| Cost of Goods Sold | 226,382 | |
| Gross Profit | 466,161 | 10,481 |
| Operating Expenses | ||
| Selling, general and administrative | 545,997 | 24,806 |
| Deprecatio |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the company experienced a net loss of $14,725 in 2021. This figure is derived from the statement of operations included in the financial statements. It is important to note that Crave Cookies Franchising, LLC was formed on February 15, 2021, meaning this loss reflects operations for a partial year.
For a prospective franchisee, understanding the franchisor's financial performance is crucial. A net loss, especially in the early stages of a company, is not uncommon as the business invests in establishing its brand and infrastructure. However, it's essential to evaluate the trend of net income or loss over several years to assess the company's financial stability and growth potential.
It would be prudent for a potential Crave Cookies franchisee to investigate the reasons behind the net loss in 2021. Understanding whether the loss was due to initial setup costs, marketing investments, or other factors can provide valuable insight. Additionally, reviewing subsequent years' financial performance to see if the company has improved its profitability is advisable. This information, combined with a thorough review of the entire FDD and discussions with existing franchisees, can help in making an informed decision about investing in a Crave Cookies franchise.