table_specific

What was the amount of distributions to the shareholder for Craters & Freighters in the provided cash flow statement?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

Cash Flows from Financing Activities:
Distributions to Shareholder - (4,945,919)
Due to Shareholder 2,769,688 -
Net Cash Flows from Financing Activities 2,769,688 (4,945,919)

Source: Item 23 — RECEIPTS (FDD pages 50–193)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, the distributions to the shareholder are detailed in the cash flow statement. Specifically, under the section 'Cash Flows from Financing Activities,' the distributions to the shareholder amounted to -$4,945,919. This figure represents the cash outflow from the company to its shareholder during the reporting period.

This distribution represents a significant financial transaction that prospective franchisees should consider. It indicates how much cash was taken out of the business by the shareholder, which can impact the company's financial stability and its ability to reinvest in growth or support franchisees. A large distribution might raise questions about the company's long-term financial strategy and its commitment to reinvesting profits back into the business.

Potential franchisees should analyze this distribution in the context of Craters & Freighters' overall financial performance and ask the franchisor about the rationale behind such distributions. Understanding the company's financial management practices is crucial for assessing the sustainability and potential risks associated with investing in a Craters & Freighters franchise. It is important to evaluate whether the distributions are sustainable and aligned with the company's long-term growth objectives.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.