What was the non-cash operating lease expense for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
5)_ | | Owner distributions | (299,129) | | Net loss | (444,708) | | Balance, December 31, 2023 | $ (1.184,312) |
| 2023 | 2022 | |||
|---|---|---|---|---|
| Operating Activities | ||||
| Net loss | $ | (444,708) | S | (84,420) |
| Items not requiring (providing) cash | 31 LMLN | |||
| Depreciation | 7,844 | 4,584 | ||
| Non-cash operating lease expense | 9,987 | 8,042 | ||
| Provision for credit losses on accounts receivable | 5,000 | |||
| Changes in | ||||
| Accounts receivable | (87,392) | (17,607) | ||
| Inventory | (6,721) | 14,319 | ||
| Prepaid expenses | 31,830 | (33,205) | ||
| Contract assets | . 30 | 44,595 | ||
| Accounts payable and accrued expenses | 118,529 | 32,788 | ||
| Lease liability | (10,310) | (7,719) | ||
| Contract liabilities | - | 624,470 | _ | 324,252 |
| Net cash provided by operating activities | - | 248,529 | _ | 285,629 |
| Investing Activities | ||||
| Purchase of property and equipment | (16,931) | (16,064) | ||
| Repayments on related-party note | 113,332 | 170,400 | ||
| Borrowings on related-party note | _ | (47,416) | (114,471) | |
| Net cash provided by investing activities | 48,985 | 39,865 | ||
| Financing Activity | ||||
| Owners distributions | (299,129) | (178,454) | ||
| Net cash used in financing activity | (2) | (299,129) | (178,454) | |
| Change in Cash | (1,615) | 147,040 | ||
| Cash, Beginning of Year | _ | 181,217 | 34,177 | |
| Cash, End of Year | $ | 179,602 | $ | 181,217 |
| Non-cash Supplemental Cash Flow Information | ||||
| Accrued expense converted into a | ||||
| note receivable - related party | $ | - E | S | 9,026 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the non-cash operating lease expense for the year 2022 was $8,042. This figure represents expenses related to operating leases that did not involve a direct cash outlay during that year.
For a prospective franchisee, understanding non-cash expenses is crucial for assessing the true profitability and cash flow of the Crave Cookies franchise. Non-cash expenses like these impact the company's net income but don't reflect actual money leaving the business.
In this case, the $8,042 non-cash operating lease expense indicates the cost of using leased assets, such as vehicles, which are accounted for under specific accounting standards (ASC 842). Reviewing these expenses helps potential franchisees gain a clearer picture of the overall financial health and operational costs of Crave Cookies.