What was the amount of Inventories for Craters & Freighters as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| As of December 31, | 2024 | 2023 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 5,342,958 $ | 6,991,649 |
| Marketable Securities - At Fair Market Value | 780,245 | 634,869 |
| Accounts Receivable - Net of Allowance for | ||
| Credit Losses of $20,000 and $50,000, Respectively | 702,206 | 569,660 |
| Other Receivable | 132,658 | - |
| Notes Receivable | 11,662 | - |
| Prepaid Expenses | 234,686 | 201,226 |
| Inventories | 7,592 | - |
| Total Current Assets | 7,212,0 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the amount of inventories as of December 31, 2024, was $7,592. This figure is part of the current assets listed on the balance sheet. In comparison, the FDD indicates that Craters & Freighters did not list any inventories for the year 2023.
For a prospective franchisee, understanding the inventory value is crucial for assessing the company's financial health and operational efficiency. The presence of inventories in 2024, where there were none in 2023, may indicate a change in business strategy or operational activities. It is important to note that the amount is relatively small compared to other assets like cash and cash equivalents, which totaled $5,342,958 as of December 31, 2024.
Franchisees should inquire about the nature of these inventories. Understanding what these inventories consist of, how they are managed, and their impact on the overall business operations is essential. Additionally, it would be prudent to understand why there were no inventories listed in the previous year and what factors contributed to the change. This information will help in making an informed decision about investing in a Craters & Freighters franchise.