Acquisition of Company-Owned Store |
6 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Business Combination [Abstract] | |
| Acquisition of Company-Owned Store Assets | NOTE 12 - ACQUISITION OF COMPANY-OWNED STORE ASSETS
On August 15, 2025, the Company entered into an Asset Purchase Agreement with Crakim, Inc., to purchase substantially all assets related to the operation of a Rocky Mountain Chocolate Factory franchise located at Camarillo Premium Outlets, Camarillo, California. The assets acquired include inventory, equipment, trade fixtures, leasehold improvements, intellectual property, domain names, customer lists, and other tangible and intangible assets specified in the agreement. The Company did not assume any pre-existing liabilities of the seller. The total purchase price was approximately $0.2 million, consisting of (i) forgiveness of $69 thousand in franchise revenue owed by the seller to the Company, (ii) direct payments to lenders for $86 thousand of outstanding seller debts, and (iii) a holdback amount of $10 thousand, subject to post-closing asset inspection, which was paid in September 2025.
On April 30, 2026, the Company entered into an Asset Purchase Agreement with Nashville Chocolate, Inc. to purchase substantially all of the assets related to the operation of a Rocky Mountain Chocolate Factory franchise location at Opry Mills Mall in Nashville, Tennessee. The assets acquired include inventory, equipment, trade fixtures, leasehold improvements, intellectual property, domain names, customer lists, and other tangible and intangible assets specified in the agreement. The Company did not assume any pre-existing liabilities of the seller. The purchase price was $20 thousand plus the value of saleable inventory.
On July 15, 2026, the Company entered into an Asset Purchase Agreement with Laura Vavakin to purchase substantially all of the assets related to the operation of a Rocky Mountain Chocolate Factory franchise location at The Shoppes at Chino Hills, Chino Hills, California. The assets acquired include inventory, equipment, trade fixtures, leasehold improvements, intellectual property, domain names, customer lists, and other tangible and intangible assets specified in the agreement. The Company did not assume any pre-existing liabilities of the seller. The purchase price was $35 thousand plus the value of saleable inventory. As a result of the acquisition, this is the Company’s fifth retail store. |