Does the Crave Cookies Statement of Cash Flows disclose the components of cash and cash equivalents?

According to the 2025 Crave Cookies FDD, the company does disclose how it defines cash and cash equivalents for the purposes of the statement of cash flows. Specifically, Crave Cookies considers all short-term investments with an original maturity of three months or less to be cash equivalents.

This definition is important for prospective franchisees because it clarifies how Crave Cookies accounts for its liquid assets. Understanding this accounting practice can help franchisees better interpret the company's financial statements and assess its financial health. By classifying investments with a maturity of three months or less as cash equivalents, Crave Cookies provides a transparent view of its readily available funds.

It is a common practice for franchisors to define cash equivalents in their financial statements, as it provides clarity and consistency in financial reporting. Franchisees should review these definitions carefully to fully understand the franchisor's financial position and how they manage their liquid assets. This information, combined with other financial data, can assist potential franchisees in making informed decisions about investing in a Crave Cookies franchise.