What was the amount of distributions to shareholders for Craters & Freighters in 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
37,747 | 36.4 % |
Statements of Shareholder's Equity
| Number of | Amount | Paid-in | Retained | Shareholder's | |
|---|---|---|---|---|---|
| Shares | Capital | Earnings | Equity | ||
| Balance at January 1, 2022 | 1,000,000 $ | 100 | $ 800 $ | 2,922,499 | $ 2,923,399 |
| Shareholder Distributions | - | - | - | (2,580,237) | (2,580,237) |
| Net Income | - | - | - | 2,437,747 | 2,437,747 |
| Balance at December 31, 2022 | 1,000,000 | 100 | 800 | 2,780,009 | 2,780,909 |
| Net Income | - | - | - | 2,633,230 | 2,633,230 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the total amount of shareholder distributions for the year 2022 was $2,580,237. This figure is important for prospective franchisees as it provides insight into how Craters & Freighters manages its profits and allocates capital among its shareholders.
The distribution of such a significant amount to shareholders in 2022 indicates that Craters & Freighters was profitable enough to reward its shareholders. However, it's crucial to consider this figure in the context of the company's overall financial health, including its revenues, expenses, and retained earnings. A high distribution amount could also mean less capital is reinvested back into the company for growth and development.
For a potential franchisee, understanding these distributions can help assess the financial stability and priorities of Craters & Freighters. It is advisable to compare these distributions with those of previous years and with the net income to understand the pattern and sustainability of such payouts. Additionally, it would be prudent to inquire about the company's plans for future distributions and how they might affect the resources available for supporting franchisees.