What was the value of Crave Cookies' accounts receivable in 2021?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive. The Company provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2022 and 2021, there was no allowance for doubtful accounts recorded.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the financial statements include balance sheets as of December 31, 2022 and 2021. The notes to these financial statements describe Crave Cookies' accounting policies. Accounts receivable are amounts due from customers for which Crave Cookies has an unconditional right to receive payment. As of December 31, 2022 and 2021, Crave Cookies did not record an allowance for doubtful accounts.
This means that Crave Cookies considered all accounts receivable fully collectible as of those dates. The FDD does not, however, state the actual value of accounts receivable on those dates.
A prospective Crave Cookies franchisee should inquire about the actual value of accounts receivable for 2021 to gain a better understanding of the company's financial performance and the amounts typically outstanding from customers. Understanding the magnitude of receivables can help a franchisee assess the company's revenue cycle and cash flow management.