What was the accumulated depreciation for vehicles owned by Craters & Freighters as of December 31, 2022?

According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2022, the accumulated depreciation for vehicles was $113,372. The original cost of the vehicles was $215,039, resulting in a net book value of $101,667.

Accumulated depreciation represents the total amount of an asset's cost that has been expensed as depreciation since the asset was put into service. This accounting practice reflects the wearing out or obsolescence of assets over time. The net book value is the asset's original cost less the accumulated depreciation, indicating the asset's value on the balance sheet.

For a prospective Craters & Freighters franchisee, understanding these figures is crucial for assessing the financial health and capital expenditure requirements of the business. Vehicle depreciation is a normal operating expense, especially in a business that relies on transportation or logistics. Franchisees should consider the age and condition of vehicles when evaluating the assets of an existing Craters & Freighters location or when planning for their own equipment needs.

Reviewing these figures over several years, as presented in the FDD, can provide insights into Craters & Freighters's investment in its vehicle fleet and how it manages depreciation. This information can help a franchisee forecast future capital expenditures related to vehicle maintenance or replacement.