What was the total amount of franchise fees collected by Crave Cookies?

According to Crave Cookies' 2025 Franchise Disclosure Document, the company recognized franchising fees of $710,776 during the year ended December 31, 2024. Additionally, franchisee deposits amounting to $1,277,049 have been deferred until the revenue recognition requirements are met.

For a prospective Crave Cookies franchisee, this indicates the revenue Crave Cookies Franchising, LLC, recognizes from franchise fees. The company recognizes revenue upon the franchise opening and completion of related training, with approximately 80% of the initial franchise fee being recognized at this time. The remaining 20% is recognized over the expected 10-year life of the franchise agreement.

It's important to note that franchise fees collected before a location opens are considered contract liabilities (deferred revenue) and are recognized as income when the franchise location opens. If a franchise closes before the estimated 10-year life, Crave Cookies recognizes the remaining unearned revenue and deferred costs into income at the time of closure. This revenue recognition method could impact Crave Cookies' financial statements and should be considered by potential franchisees when evaluating the financial health of the company.