What is the revenue reported in the Crave Cookies financial statements?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| Crave Draper, LLC | $ | 20,919 |
|---|---|---|
| Crave Cookies, LLC | 2000 | 1,000 |
| Total related party receivables | $ | 21,919 |
| Crave Midvale, LLC | $ | 99,435 |
| Total related party payables | $ | 99,435 |
Notes to the Financial Statements
Note 6 - Prior Period Adjustment
During the current year audit, the Company found a revenue amount that was excluded in error. The net affect of the entry to true up the prior year's financials was to adjust the 2024 retain
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, a prior period adjustment was made during the current year's audit. This adjustment was due to a revenue amount that was initially excluded in error. As a result, the 2024 retained earnings balance was adjusted by $211,024 to correct the prior year's financials.
It is important to note that the FDD states that the effect of this entry on the prior year has not been evaluated. This means that while the adjustment impacts the retained earnings for 2024, the full implications for the financial statements of the previous year are not yet determined or disclosed.
Prospective franchisees should be aware of this adjustment and its potential impact on the overall financial picture of Crave Cookies. It would be prudent to inquire with the franchisor about the details of this adjustment, the reasons for the initial error, and whether the evaluation of the prior year's effect has been completed. Understanding these details will provide a clearer view of the company's financial performance and stability.