What was the total value of Crave Cookies' long-term contract liabilities 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 company's total long-term contract liabilities in 2022 were valued at $647,694. This figure represents the financial obligations Crave Cookies has extending beyond the upcoming year, specifically related to contracts.
For a prospective Crave Cookies franchisee, understanding the franchisor's long-term liabilities is crucial. It provides insight into the company's financial commitments and stability. A high amount of long-term liabilities could indicate significant future obligations that might impact the franchisor's ability to support its franchisees or invest in the brand's growth. Conversely, a lower amount might suggest greater financial flexibility.
It's important to note that contract liabilities typically arise from various agreements, such as deferred revenue from franchise fees or other long-term service agreements. Franchisees should inquire about the nature of these liabilities to assess any potential risks or benefits. Reviewing these figures in comparison to previous years and with other similar franchise systems can provide a more comprehensive understanding of Crave Cookies' financial health and long-term stability.