For the statement of cash flows, what maturity period does Crave Cookies consider to be cash equivalents?

According to Crave Cookies's 2025 Franchise Disclosure Document, the company considers investments with an original maturity of three months or less to be cash equivalents for the purposes of the statement of cash flows. This means that any short-term investments Crave Cookies holds that will mature within this timeframe are treated as cash when reporting the company's cash flow activities.

For a prospective Crave Cookies franchisee, this definition is relevant in understanding the company's financial statements. Cash equivalents are highly liquid assets that can be quickly converted to cash. By including investments with a maturity of three months or less, Crave Cookies provides a more comprehensive view of its short-term liquidity.

It is important to note that this is a standard accounting practice. Defining cash equivalents in this way allows for a clearer picture of the company's immediate financial resources. Franchisees reviewing the financial statements should understand that this definition impacts how cash flow is presented.