What was the value of Crepe De Licious's inventory as of December 31, 2023?

According to Crepe De Licious's 2025 Franchise Disclosure Document, inventory mainly consists of food, beverages, paper products, and other minor equipment. The FDD states that the inventory is valued at the lower of cost (using the first-in, first-out basis) or net realizable value. However, the exact value of Crepe De Licious's inventory as of December 31, 2023, is not specified in the provided excerpts.

For a prospective Crepe De Licious franchisee, understanding the inventory valuation method is important for managing their own store's assets. Knowing that inventory is valued at the lower of cost or net realizable value ensures that the franchisee's financial statements accurately reflect the value of goods on hand. The first-in, first-out (FIFO) method assumes that the first items purchased are the first ones sold, which can impact cost of goods sold and ultimately, profitability.

Because the specific inventory value is not disclosed, it is essential for potential franchisees to ask Crepe De Licious for detailed financial statements during their due diligence. This will provide a clearer picture of the company's financial health and how inventory is managed. Franchisees should also inquire about inventory management systems and best practices to minimize waste and maximize profitability.