What was the operating lease cost for Crave Cookies for the year ended December 31, 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ts. Lease expense on such leases is recognized on a straight-line basis over the lease term.
Nature of Leases
The Company has entered into the following lease arrangements:
Operating Leases
The Company leased a vehicle that expired in 2023 and had monthly payments of $674.
In 2023, the Company entered into a new vehicle lease that expires in 2025 and has monthly payments of $576. Termination of the lease is generally prohibited unless there is a violation under the lease agreement.
All Leases
The Company has no material related-party leases.
The Company's lease agreement does not contain any material residual value guarantee or material restrictive covenants.
Quantita
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the provided excerpts do not contain the specific operating lease cost for the year ended December 31, 2022. While the document discusses the company's accounting policies regarding operating leases and provides details on vehicle leases entered into by Crave Cookies, it does not disclose the total operating lease cost for 2022. The notes to the financial statements describe how Crave Cookies recognizes and measures lease liabilities and assets, including the use of a risk-free rate for calculations. The company leases a vehicle with monthly payments of $674 that expired in 2023, and entered into a new vehicle lease in 2023 with monthly payments of $576 that expires in 2025.
To fully understand the operating lease expenses, a prospective franchisee should carefully review the complete financial statements, specifically the income statement or statement of cash flows, which are not included in the provided excerpts. These statements would provide a comprehensive view of Crave Cookies' lease-related expenses.
It is important for potential franchisees to ask Crave Cookies for the full financial statements and to clarify all operating lease costs, including any leases for real estate or equipment, to get a clear picture of the company's financial obligations and how these costs might impact the profitability of a franchise location. Understanding these costs is crucial for assessing the overall financial health of Crave Cookies and the potential financial performance of a franchise.