Does the Crave Cookies Statement of Cash Flows include information about restricted cash?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
sh 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies FDD, the Statement of Cash Flows does not specifically mention "restricted cash." However, the notes to the financial statements do discuss cash and cash equivalents. For the purposes of the statement of cash flows, Crave Cookies considers all short-term investments with an original maturity of three months or less to be cash equivalents.
Crave Cookies maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. As of December 31, 2024 the Company did not have cash balances over the federally insured limit. 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.
A prospective franchisee should inquire with Crave Cookies about whether there are any requirements to maintain restricted cash balances, and if so, how these restrictions might impact their ability to access funds for operations or other needs. Understanding the nature of any cash restrictions is crucial for assessing the true liquidity position of the franchise.