What was the amortization expense for Craters & Freighters in the earlier of the two years presented?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
|---|---|---|
| From Operating Income: | ||
| Amortization Expense | 101,989 | 99,763 |
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 FDD, Craters & Freighters had an amortization expense of $99,763 in the earlier of the two years presented. This figure is part of the adjustments used to reconcile net income to net cash and cash equivalents from operating income.
Amortization expense represents the allocation of the cost of intangible assets over their useful lives. For a Craters & Freighters franchisee, understanding this expense in the context of the franchisor's financial statements can provide insight into how the company manages its assets and investments. It's important to note that this expense does not represent a cash outflow during the period, but rather a reduction in the book value of intangible assets.
Prospective franchisees should consider the amortization expense in conjunction with other financial statement items to gain a comprehensive understanding of Craters & Freighters's financial performance. Reviewing trends in amortization expense over multiple periods can also provide insights into the company's investment strategies and asset management practices. Additionally, it's advisable to compare these figures with industry benchmarks to assess Craters & Freighters's performance relative to its peers.