What are the terms of the related party note payable for Crave Cookies?

According to Crave Cookies' 2025 Franchise Disclosure Document, the related party note payable represents amounts due to a related party for operating expenses and other fees that were paid on behalf of the company. The related party is owned 100% by the owners of Crave Cookies.

The terms of this note are non-interest bearing, meaning Crave Cookies does not accrue or pay any interest on the outstanding balance. Additionally, the note is due on demand, indicating that the related party can request repayment of the outstanding balance at any time.

This arrangement is relatively common in closely held businesses, where the owners may provide financial support to the company. However, prospective franchisees should be aware of the potential risks associated with related-party transactions. It is important to understand the nature and extent of these transactions and how they might impact the financial stability of Crave Cookies. Franchisees should seek clarification from Crave Cookies regarding the specific circumstances under which the note might be called and how this could affect the company's operations.