What was the accumulated depreciation for vehicles owned by Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
in the valuation methodology from the prior year.
Notes to Financial Statements
Note 3: Property and Equipment
| As of December 31, 2023 | Cost | Accumulated Depreciation | Net Book Value | |
|---|---|---|---|---|
| Office Equipment | $ 80,613 | $ 80,613 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the accumulated depreciation for vehicles as of December 31, 2023, was $21,737. The original cost of the vehicles was $202,688, resulting in a net book value of $180,951.
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 figure is important for understanding the true value of Craters & Freighters' assets, as it reflects the wear and tear or obsolescence of the vehicles over time. The net book value is calculated by subtracting the accumulated depreciation from the original cost, giving a more accurate picture of the asset's current worth.
For a prospective franchisee, understanding these figures can be helpful in assessing the financial health and capital expenditure requirements of the Craters & Freighters franchise. It provides insight into the company's investment in vehicles and how these assets are being depreciated. This information, combined with other financial data, can aid in making an informed decision about investing in a Craters & Freighters franchise.