What are the terms for the notes payable to the related party for Crave Cookies?

According to the 2025 Crave Cookies FDD, the related party note payable represents amounts due to a related party for operating expenses and other fees that were paid on behalf of Crave Cookies. The terms of this note are non-interest bearing, meaning Crave Cookies will not accrue interest expenses on these amounts. Additionally, the note is due on demand, indicating that the related party can request repayment at any time. The related party is owned 100% by the owners of Crave Cookies.

For a prospective franchisee, this arrangement indicates that Crave Cookies has financial relationships with entities controlled by its owners. While the non-interest bearing and on-demand nature of the note provides some flexibility, it also introduces a degree of uncertainty. The franchisee should be aware that these related-party transactions could potentially impact the financial stability of Crave Cookies, especially if the related party demands immediate repayment of the note.

It is important for potential franchisees to fully understand the extent and nature of these related-party transactions. While the FDD provides some information, franchisees should consider asking Crave Cookies for more detailed information about the amounts involved in the related party note payable, the specific operating expenses and fees covered, and the historical repayment patterns. Understanding these details will help franchisees assess the potential risks and benefits associated with these financial arrangements.