For Crave Cookies, what period does the statement of operations cover for the year 2021?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the financial statements of Crave Cookies Franchising, LLC (the Company), which comprise the balance sheets as of December 31, 2022 and 2021, and the related statements of operations, members' deficit, and cash flows for the year ended December 31, 2022 and the period from February 15, 2021 (inception) to December 31, 2021, and the related notes to the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the statement of operations for 2021 covers the period from February 15, 2021 (inception) to December 31, 2021. This means the financial statement reflects the company's operations for roughly 10 and a half months, starting from the date the company was formed.
For a prospective franchisee, this is important because the 2021 financial data represents a partial year of operation. When reviewing the statement of operations, it is crucial to consider that the revenue and expenses are not for a full 12-month period. This could affect the interpretation of the company's financial performance during that year.
When evaluating the financial statements, a potential franchisee should normalize the 2021 data to a full year to make a more accurate comparison with the 2022 data. This can be done by annualizing the revenues and expenses from the period of February 15, 2021, to December 31, 2021. This adjusted data will provide a better understanding of the potential financial performance of a Crave Cookies franchise over a complete year.