What are the terms of the related party note receivable for Crave Cookies?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Related party note receivable - related party notes receivable represents amounts due from a related party for operating expenses and other fees that the Company paid on behalf of the related party. The terms of the note are non-interest bearing and due on demand. The related party is owned 100% by the owners of the Company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the related party note receivable represents money owed from a related party for operating expenses and other fees that Crave Cookies paid on behalf of the related party. The related party is wholly owned by the owners of Crave Cookies.
The terms of this note are that it is non-interest bearing, meaning that Crave Cookies will not accrue interest on the amount owed. Additionally, the note is due on demand, meaning that Crave Cookies can request repayment of the balance at any time.
For a prospective franchisee, this related party transaction is important to note. While it doesn't directly impact the franchisee's operations, it provides insight into the financial relationships between Crave Cookies and its owners. It is fairly common for franchisors to have related party transactions, and the details of these arrangements are disclosed in the FDD for transparency.