What was the loss on disposal of property and equipment for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Loss on disposal of property and equipment | (1,879) | - |
|---|---|---|
| Income before provision for income taxes | 68,407 | 131,648 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the loss on disposal of property and equipment was $1,879 in 2024. There was no loss on disposal of property and equipment in 2023. This figure is part of the adjustments to reconcile net income to net cash provided by operating activities.
For a prospective franchisee, this indicates that Crepe De Licious occasionally disposes of property and equipment at a loss. The loss on disposal of property and equipment is a non-cash transaction that affects the reconciliation of net income to net cash flow from operations.
Franchisees should consider these types of losses when projecting their own potential profitability and cash flow. While a loss of $1,879 may not be substantial, it is important to understand how such events are accounted for and how they might impact the overall financial performance of a Crepe De Licious franchise.