What was the amount of Notes Receivable 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 | 7,212,007 | 8,397,404 |
| Property and Equipment - At Cost: | ||
| Office Equipment | 102,860 | 80,613 |
| Furniture and Fixtures | 19,863 | 19,863 |
| Leasehold Improvements | 11,415 | 11,415 |
| Vehicles | 202,688 | 202,688 |
| 336,826 | 314,579 | |
| Less: Accumulated Depreciation | (175,649) | (133,628 |
| Property and Equipment - Net | 161,177 | 180,951 |
| Other Assets: | ||
| Software Development - Net of Accumulated | ||
| Amortization of $434,154 and $317,185, Respectively | 197,251 | 153,931 |
| Due from Related Party | - | 356,391 |
| Notes Receivable | 5,329 | - |
| Note Receivable - Former Employee | 160 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company had two types of notes receivable as of December 31, 2024. The first is simply listed as "Notes Receivable" under current assets, with a value of $11,662. The second is listed under other assets as "Note Receivable - Former Employee" with a balance of $160,000.
For a prospective franchisee, notes receivable represent money owed to Craters & Freighters. The notes receivable under current assets are typically short-term in nature, while the note receivable from a former employee is classified as a long-term asset. The note receivable from the former employee is related to educational costs and has monthly payments of $1,545 due December 2035, with an interest rate of 3%. Payments are scheduled to begin January 2026.
It is important to note that the "Note Receivable - Former Employee" is classified as a long-term asset because payments are not scheduled to begin until January 2026. This means that Craters & Freighters does not expect to receive these funds in the short term. The notes receivable under current assets are expected to be collected within a year. Understanding the nature and terms of these receivables can give a franchisee a clearer picture of the company's financial health and expected cash inflows.