What does the related party note payable represent for Crave Cookies?

According to Crave Cookies' 2025 Franchise Disclosure Document, a related party note payable represents amounts that Crave Cookies owes to a related party. These amounts are for operating expenses and other fees that the related party paid on behalf of Crave Cookies.

The terms of these notes are that they are non-interest bearing and due on demand. This means Crave Cookies does not accrue interest on the amount owed, and the related party can request repayment at any time. The related party is owned 100% by the owners of Crave Cookies.

For a prospective franchisee, this indicates that Crave Cookies has financial relationships with entities controlled by its owners. While such arrangements are not inherently problematic, it's important to understand the nature and extent of these transactions. A franchisee should seek clarification from Crave Cookies regarding the specific operating expenses and fees covered by these notes, the total outstanding amount, and the potential impact on the company's financial stability. Understanding these related-party transactions is crucial for assessing the overall financial health and risk profile of the franchise.