Who owns the related party that owes money to Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Related party note receivable - related party notes receivable represents amounts due from a related party for operating expenses and other fees that the Company paid on behalf of the related party. The terms of the note are non-interest bearing and due on demand. The related party is owned 100% by the owners of the Company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, a related party owes money to Crave Cookies Franchising, LLC. Specifically, these notes receivable represent amounts due from the related party for operating expenses and other fees that Crave Cookies paid on behalf of this related entity. The terms of this arrangement are that the note is non-interest bearing and due on demand.
The FDD states that the related party is wholly owned, meaning 100%, by the owners of Crave Cookies Franchising, LLC. This indicates that the individuals who own Crave Cookies also have ownership of the entity that owes money to the franchise.
For a prospective franchisee, this related-party transaction highlights the importance of understanding the financial relationships within the Crave Cookies organization. While such arrangements are not uncommon, franchisees should seek clarification from Crave Cookies regarding the nature of these transactions, the amounts involved, and the potential impact on the financial stability of the franchise system. Understanding these relationships can provide a more transparent view of the financial health and management practices of Crave Cookies.