Does the Crave Cookies Statement of Cash Flows include information about capital expenditures?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Independent Auditor's Report
Members and Management Crave Cookies Franchising, LLC Riverton, Utah
Opinion
We have audited the financial statements of Crave Cookies Franchising, LLC (the Company), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of operations, members' deficit, and cash flows for the years ended December 31, 2023 and 2022, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that these financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies FDD excerpts, the Independent Auditor's Report mentions that the financial statements of Crave Cookies Franchising, LLC include the balance sheets, statements of operations, members' deficit, and cash flows. These statements are audited to present fairly the financial position, results of operations, and cash flows of the company. Notes to the financial statements also discuss property and equipment. However, the excerpts do not explicitly detail whether the Statement of Cash Flows includes a specific line item or breakdown of capital expenditures.
To fully understand how Crave Cookies accounts for capital expenditures, a prospective franchisee should carefully review the complete financial statements and accompanying notes within the FDD. This review should focus on sections detailing cash flows from investing activities, which typically include capital expenditures.
It would be prudent for a potential Crave Cookies franchisee to ask the franchisor for clarification on how capital expenditures are reported in the Statement of Cash Flows. Specifically, they should inquire about the types of expenditures classified as capital expenditures and whether these are separately disclosed. Understanding this aspect of the company's financial reporting is crucial for assessing the overall investment requirements and financial health of the franchise system.