Does the Crave Cookies Statement of Cash Flows disclose the amount of interest capitalized during the period?

Based on the 2025 Crave Cookies Franchise Disclosure Document, there is no explicit mention of capitalized interest within the provided excerpts of the financial statements or the accompanying notes. The excerpts detail various aspects of Crave Cookies's accounting practices, such as revenue recognition, cash and cash equivalents, accounts receivable, inventory valuation, and handling of doubtful accounts. They also cover related-party transactions, prepaid expenses, and potential litigation. Independent auditor's reports are included, offering opinions on the fairness of the financial statements.

However, the excerpts do not contain any specific line items or disclosures related to the capitalization of interest. Capitalized interest typically arises when a company incurs debt to finance the construction or development of an asset, and the interest expense is added to the cost of the asset rather than being expensed immediately. The absence of this disclosure suggests that Crave Cookies may not have engaged in activities that would result in capitalized interest during the periods covered by the financial statements, or that such amounts were immaterial and not separately disclosed.

A prospective Crave Cookies franchisee should be aware that the financial statements presented in the FDD provide a snapshot of the franchisor's financial health and accounting practices. While the absence of capitalized interest may not be a significant concern, it is essential to review the complete financial statements and notes to gain a comprehensive understanding of the franchisor's financial position. If capitalized interest is a relevant factor for assessing the franchisor's financial performance, further inquiry may be necessary.

To gain clarity, a potential franchisee should consider asking Crave Cookies directly whether they have any capitalized interest and, if so, where it is disclosed in their financial statements. Understanding the franchisor's accounting policies and practices is crucial for making an informed investment decision.