Does the Crave Cookies Statement of Cash Flows include information about lines of credit?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
See accompanying notes and independent accountants' audit report
Notes to the Financial Statements
Note 1 - Organization and Summary of Significant Accounting Policies
Organization - Crave Cookies Franchising, LLC (the Company) formed on February 15, 2021 under the laws of the state of Utah as a Utah corporation.
The Company is a franchise company for Crave Cookies locations. The Company grants franchisees 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. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses which, when realized, have been within the range of management's expectations.
The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with respect to cash and cash equivalents. As of December 31, 2024 the Company did not have cash balances over the federally insured limit.
Cash and Cash Equivalents - For purposes of the statement of cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalents.
Contract receivables - accounts receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive. The Company provides an allowance for credit losses, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2024, there was no allowance for credit losses recorded.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies FDD excerpts, there is no explicit mention of "lines of credit" within the provided financial statements or the accompanying notes. The excerpts focus on the standard financial statements, audit reports, and accounting policies.
The notes to the financial statements do cover topics such as the company's organization, use of estimates, cash and cash equivalents, accounts receivable, inventories, related party notes receivable, prepaid expenses, and property and equipment. For example, the notes explain how Crave Cookies handles accounts receivable, including the allowance for credit losses and write-offs of delinquent receivables. They also detail the valuation methods for inventories (cookie boxes) and the treatment of notes receivable from related parties.
However, without specific details about lines of credit, a prospective Crave Cookies franchisee cannot assess how the company uses this financing method, its associated costs, or its impact on cash flow. It is important for potential franchisees to ask Crave Cookies directly about any existing lines of credit, their terms, and how they are reflected in the company's financial statements. This information is essential for a complete understanding of the company's financial health and stability.