Does the Crave Cookies Statement of Cash Flows disclose any commitments or contingencies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
s the right to operate a physical storefront location using the Crave Cookies name and marks.
Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Concentrations of Credit Risk - Financial instruments which potentially subject the Company to concentration of credit risk consist primarily of receivables. In the normal course of business, the Company provides credit terms to its customers.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the notes to the financial statements address the use of estimates, stating that the preparation of financial statements requires management to make estimates and assumptions that could affect the disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
Specifically, Note 4 addresses general litigation, stating that Crave Cookies is subject to claims and lawsuits that arose primarily in the ordinary course of business. However, management believes that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the company's financial position, results of operations, and cash flows. Events could occur that would change this estimate materially in the near term.
Prospective franchisees should be aware that while management does not anticipate any material adverse effects from current claims and lawsuits, this is only an estimate and is subject to change. It is important for potential franchisees to consult with a financial advisor to understand the potential impact of these contingencies on their investment.