What was the net loss for Crave Cookies in 2023?
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 company experienced a net loss of $444,708 in 2023. This figure is part of the statement of changes in members' deficit, detailing how the deficit changed over time due to owner distributions and net losses. The balance at the end of 2023 was a deficit of $1,184,312.
For a prospective franchisee, this indicates that Crave Cookies Franchising, LLC was not profitable in 2023. A significant net loss can raise concerns about the financial stability of the franchisor. It is important to investigate the reasons behind the loss, such as high operating expenses, investments in growth, or other factors.
Understanding the franchisor's financial health is crucial, as it can impact the support and resources they can provide to franchisees. A franchisee should consider this net loss in the context of the company's overall financial performance and future projections. It would be prudent to discuss this loss with Crave Cookies and seek clarification on their plans to improve profitability.
It is also worth noting that the company had a net loss of $84,420 in 2022. The increasing net loss from 2022 to 2023 suggests a worsening financial situation. A potential franchisee should carefully evaluate the franchisor's strategies for reversing this trend and achieving sustainable profitability before investing in a Crave Cookies franchise.