Does the Crave Cookies Statement of Cash Flows disclose any related party transactions?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
ear. As of the year ended December 31, 2024, a break-out of the related payables and receivables are as follows:
| 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the financial statements do include disclosures of related party transactions. Specifically, the notes to the financial statements for the years 2022 and 2021 mention notes receivable from a related party. These notes represent amounts due from a related party for operating expenses and other fees that Crave Cookies paid on behalf of the related party. The terms of these notes are non-interest bearing and due on demand, and the related party is owned 100% by the owners of Crave Cookies.
Additionally, the FDD reveals specific related party receivables and payables. Crave Draper, LLC owes $20,919, and Crave Cookies, LLC owes $1,000, resulting in total related party receivables of $21,919. Crave Midvale, LLC, on the other hand, owes $99,435, which constitutes the total related party payables. These figures indicate financial interactions between Crave Cookies Franchising, LLC and other entities with common ownership or affiliation.
For a prospective franchisee, these related party transactions are important to consider as they can influence the financial health and transparency of Crave Cookies. Understanding the nature and magnitude of these transactions can provide insights into the company's financial management practices and potential conflicts of interest. It is advisable for potential franchisees to seek clarification from Crave Cookies regarding the purpose and impact of these related party transactions on the overall financial performance of the franchise system.