Who owns the related party to whom Crave Cookies owes money?

According to Crave Cookies' 2025 Franchise Disclosure Document, the related party to whom Crave Cookies owes money is owned 100% by the owners of the Company. This related party note payable represents amounts due to a related party for operating expenses and other fees that were paid on behalf of Crave Cookies. The terms of this note are non-interest bearing and due on demand.

For a prospective franchisee, this related party transaction indicates that the owners of Crave Cookies have financial relationships with the franchise entity. This arrangement could be in place for various reasons, such as managing initial capital or streamlining certain operational costs. However, it's important to note that such related-party transactions can create potential conflicts of interest.

As the note is due on demand and non-interest bearing, it suggests a flexible financial arrangement between Crave Cookies and its owners. While this could provide some financial flexibility for the company, it also means that the owners could demand repayment at any time, which could impact the company's cash flow. A prospective franchisee should consider the implications of this arrangement and how it might affect the financial stability of the franchise system.

It is advisable for potential franchisees to seek clarification from Crave Cookies regarding the nature and purpose of these related-party transactions. Understanding the specific operating expenses and fees covered by the note payable, as well as the history and frequency of repayments, can provide a clearer picture of the financial relationship between the company and its owners. This due diligence will help franchisees assess the potential risks and benefits associated with this financial structure.