What was the accrued bonus amount for Craters & Freighters in 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 9,391,294 $ | 4,370,648 |
Balance Sheets (Continued)
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Liabilities: | ||
| Accounts Payable | $ 1,061,526 $ | 1,241,420 |
| Accrued Liabilities | 1,790 | 458 |
| Accrued Bonus | - | 132,340 |
| Operating Lease Liability - Due Wit |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the accrued bonus for the company as of December 31, 2023, was $0. This figure is part of the company's current liabilities.
To provide context, the accrued bonus represents the amount of bonus compensation that Craters & Freighters owes to its employees or executives but has not yet paid out as of the end of the fiscal year. This is a common liability for businesses that offer bonus programs, and it reflects the company's commitment to compensate its personnel based on performance or other agreed-upon metrics.
The balance sheet also shows that the accrued bonus as of December 31, 2022, was $132,340. The decrease from $132,340 in 2022 to $0 in 2023 indicates that Craters & Freighters paid out the accrued bonuses during 2023. This could be due to changes in the bonus structure, company performance, or payout timing.
A prospective franchisee should note these figures to understand how Craters & Freighters manages its employee compensation and liabilities. Understanding the bonus structure and how it impacts the company's financial statements can provide insights into the company's operational practices and financial health.