Does Crave Cookies provide an allowance for doubtful accounts?

According to Crave Cookies' 2025 Franchise Disclosure Document, the company does provide an allowance for credit losses, formerly referred to as an allowance for doubtful accounts. This allowance is based on a review of outstanding receivables, historical collection information, and existing economic conditions.

As of December 31, 2024, there was no allowance for credit losses recorded. However, in previous years, the company's policy and practice has varied.

For the years ended December 31, 2023 and 2022, there was no allowance for credit losses recorded. During the years ended December 31, 2023 and 2022, credit loss expense related to doubtful accounts receivable, where collectability is not reasonably assured, was $5,000 and $0, respectively. Similarly, as of December 31, 2022 and 2021, there was no allowance for doubtful accounts recorded, and no bad debt expense was recorded in 2022 or 2021. This indicates that while Crave Cookies has a policy to account for potential credit losses, the actual amounts have fluctuated, with no allowance needed in some years and an expense recorded in others.

Prospective franchisees should be aware that while Crave Cookies assesses and provides for potential credit losses, the actual expense can vary. This could impact the franchisee's financial statements and should be considered when evaluating the franchise opportunity.