Does Crepe De Licious have any contract assets as of December 31, 2023?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company did not have any contract assets as of December 31, 2023. The FDD clarifies that contract liabilities include deposits received for initial franchise fees. Crepe De Licious anticipates that substantially all contract liabilities will be satisfied in the subsequent year.

This means that as a potential franchisee, you should be aware that any deposits Crepe De Licious holds for initial franchise fees are considered liabilities on their balance sheet, not assets. This is a standard accounting practice, as the company has an obligation to provide the franchise or refund the deposit.

It's also worth noting that Crepe De Licious's revenue recognition policy involves accounting for contracts when approval and commitment from both parties are obtained, rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. This is a typical approach to revenue recognition in the franchise industry.