What was the total amount of current liabilities for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
the audit.
FORVIS, LLP
Salt Lake City, Utah November 13, 2023
Balance Sheets December 31, 2022 and 2021
Assets
| 2022 | 2021 | |
|---|---|---|
| Current Assets | ||
| Cash | $ 181,217 | $ 34,177 |
| Accounts receivable | 17,607 | 5-6 |
| Inventory | 7,196 | 21,515 |
| Prepaid expenses | 26,795 | |
| Contract assets | - | 2,000 |
| Note receivable - related party | 15,996 | 62,899 |
| Total current assets | 248,811 | 120,591 |
| Property and Equipment, at Cost | ||
| Equipment | 23,272 | 7,208 |
| Accumulated depreciation | (4,984) | (400) |
| Total property and equipment, net | 18,288 | 6,808 |
| Right-of-Use (ROU) Assets - Operating Leases | 3,716 | 859 |
| Other Assets | 6,410 | 859 |
| Contract Assets - Long-term | 42,595 | |
| Total assets | $ 277,225 | $ 169,994 |
| Liabilities and Members' Deficit | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 58,990 | $ 17,176 |
| Operating lease liabilities | 4,039 | |
| Contract liabilities, current portion | 6,977 | 262,239 |
| Total current liabilities | 70,006 | 279,415 |
| Long-term Liabilities | ||
| Contract liabilities | 647,694 | 68,180 |
| Total long-term liabilities | 647,694 | 68,180 |
| Total liabilities | 717,700 | 347, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the total current liabilities for the company in 2022 were $70,006. Current liabilities represent the company's obligations that are due within one year. These liabilities include accounts payable and accrued expenses, operating lease liabilities, and the current portion of contract liabilities.
For a prospective franchisee, understanding the current liabilities of Crave Cookies Franchising, LLC can provide insight into the company's short-term financial obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, meaning the company might struggle to meet its short-term obligations. Conversely, a manageable level of current liabilities suggests the company is in good financial health and able to meet its immediate obligations.
The components of current liabilities offer further insight. Accounts payable and accrued expenses represent short-term obligations to suppliers and other service providers. Operating lease liabilities reflect the current portion of lease payments due within the year. Contract liabilities, current portion, represent obligations to provide goods or services to customers within the next year for which payment has already been received. Monitoring these individual components can help a franchisee assess the nature and predictability of the company's short-term obligations.
It is important to note that these figures are based on the financial statements as of December 31, 2022, and may not reflect the current financial situation of Crave Cookies. Prospective franchisees should review the most recent financial statements and consult with a financial advisor to fully understand the company's financial health and potential risks.