What was the value of Crave Cookies' accounts receivable at the end of 2023?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable
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 credit losses, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2023 and 2022, there was no allowance for credit losses recorded.
Generally, the Company does not charge interest on past due accounts. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. During the years ended December 31, 2023 and 2022, credit loss expense related
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
The 2025 Crave Cookies FDD states that accounts receivable are recorded as the amount of consideration expected from customers. Crave Cookies may provide an allowance for credit losses based on receivable reviews, historical collection data, and economic conditions. As of December 31, 2023, Crave Cookies did not record an allowance for credit losses.
Crave Cookies generally does not charge interest on past due accounts, and delinquent receivables are written off based on individual credit evaluations and specific customer circumstances. In 2023, Crave Cookies recognized $5,000 in credit loss expense related to doubtful accounts receivable where collectability was not reasonably assured.
While the FDD describes how Crave Cookies values and manages accounts receivable, it does not explicitly state the total value of accounts receivable as of December 31, 2023. A prospective franchisee should inquire with Crave Cookies about the total value of accounts receivable for that period to gain a clearer understanding of the company's financial position and the amounts it expects to collect from customers.