What was the total amount of equipment at cost 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 cost of equipment in 2022 was $23,272. This figure represents the initial cost of the equipment before any deductions for accumulated depreciation.
For a prospective franchisee, this number is important because it provides insight into the capital investment Crave Cookies has made in its own equipment. It can be used as a benchmark when evaluating the reasonableness of the estimated equipment costs outlined in Item 7 of the FDD, which details the estimated initial investment for franchisees.
It's also important to note that this figure does not reflect the net value of the equipment after accounting for depreciation. The accumulated depreciation for 2022 was ($4,984), which reduces the net book value of the equipment to $18,288. Franchisees should consider the depreciation expense when forecasting the profitability of their Crave Cookies location.