What was the total value of Crave Cookies' contract liabilities, current portion, in 2021?
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 value of their contract liabilities, current portion, in 2021 was $262,239. This figure represents the short-term portion of obligations that Crave Cookies has to its franchisees or other parties, which are expected to be settled within one year. These liabilities likely stem from advance payments or deposits received for services or products not yet delivered.
For a prospective Crave Cookies franchisee, this number provides insight into the company's financial obligations and how they manage their short-term liabilities. A high value in contract liabilities could indicate strong sales and advance bookings, but it also means Crave Cookies has a significant responsibility to fulfill those obligations.
It's important to note that this is just a snapshot in time, and the value of contract liabilities can fluctuate depending on various factors such as seasonality, promotional activities, and changes in payment terms. Franchisees should monitor these figures over time to assess the financial health and stability of Crave Cookies. Understanding the nature and management of these liabilities can help franchisees gauge the franchisor's financial practices and potential risks.