What was the net loss or profit for Cr3 American Exteriors during the year 2024?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Loss | (46,591) | | Equity at December 31, 2022 | $ 4,820 | | Equity at January 1, 2023 | $ 4,820 | | Capital Contributions | 28,589 | | Net Loss | (14,538) | | Equity at December 31, 2023 | $ 18,871 | | Equity at January 1, 2024 | $ 18,871 | | Capital Contributions | 30,000 | | Net Loss | 89,667 | | Equity at December 31, 2024 | $ 138,538 |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | · | ||
| Net Income (Loss) | $ 89,667 | $ (14,538) | $ (46,591) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 87 | 87 | 29 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Prepaid Expenses | (1,525) | = | |
| (Increase) Decrease in Accounts Receivable | (283,085) | (29,624) | - |
| (Increase) Decrease in Other Receivables | (15,591) | (25,000) | _ |
| Increase (Decrease) in Accounts Payable | 32,746 | 1,965 | = |
| Increase (Decrease) in Payroll Liabilities | 1,628 | 1,523 | - |
| Increase (Decrease) in Deferred Revenue | 307,113 | 32,375 | - |
| Net Cash Provided by Operating Activities | 131,040 | (33,212) | (46,562) |
| Cash Flows From Investing Activities: | |||
| Due To Affiliates | (38,293) | 47,328 | _ |
| Purchase of Assets | (50,275) | 47,320 | (1,300) |
| Net Cash Provided by Investing Activities | (38,293) | 47,328 | $\frac{(1,300)}{(1,300)}$ |
| Cash Flows From Financing Activities: | W-1000-7 | ||
| Capital Contributions | 30,000 | 28,589 |
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the company experienced a net income of $89,667 in 2024. This is a notable turnaround from the previous years, as the company reported a net loss of $14,538 in 2023 and $46,591 in 2022. This information is derived from the cash flow statement, which outlines the company's financial performance over the past three years.
For a prospective franchisee, this indicates a positive trend in the company's financial health. A profitable year suggests that the business model is gaining traction and may be more sustainable. However, it's important to consider the factors contributing to this profit, such as changes in assets and liabilities, which can significantly impact net cash flow. For instance, the document shows a substantial increase in deferred revenue of $307,113 in 2024, which could be a factor in the increased net income.
It is also important to note the capital contributions made to the company. In 2024, capital contributions amounted to $30,000, which also affects the overall equity. Reviewing these figures in the context of the company's growth and operational strategies is crucial for understanding the long-term viability of a Cr3 American Exteriors franchise. Prospective franchisees should investigate the reasons behind the fluctuations in net income and cash flow to assess the risk and potential of investing in the franchise.