What was the non-cash operating lease expense for Crave Cookies in 2023?
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 o |
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 2023 was $9,987. This figure represents the expense recognized during the year that did not involve an actual cash outlay.
Non-cash expenses like this are important for understanding the true cost structure of Crave Cookies. While the company didn't directly pay out this amount in cash during 2023, it reflects the utilization of leased assets, such as vehicles, and is an accounting recognition of the expense associated with those leases.
Prospective franchisees should pay attention to these non-cash expenses as they contribute to the overall profitability and financial health of Crave Cookies. Understanding the nature and terms of the leases, as detailed in Note 3 of the financial statements, is crucial for assessing the company's financial obligations and future cash flows.