What was the amount of Furniture and Fixtures for 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, as of December 31, 2023, the cost of Furniture and Fixtures was $19,863, with accumulated depreciation also at $19,863, resulting in a net book value of $0. This indicates that the furniture and fixtures were fully depreciated at that time.
For a prospective franchisee, this information is relevant when assessing the initial investment and ongoing capital expenditure requirements. Fully depreciated assets might suggest that these items are nearing the end of their useful life and may need replacement soon. Therefore, a franchisee should factor in potential future costs for replacing furniture and fixtures.
It's important to note that while the net book value was zero due to accumulated depreciation, the actual cost of the furniture and fixtures was $19,863. This distinction is crucial for understanding the true investment in these assets and planning for their eventual replacement. A potential franchisee should discuss with Craters & Freighters the typical lifespan of furniture and fixtures used in the business and the expected costs of replacement to ensure accurate financial forecasting.