What was the amount of paid-in capital for Craters & Freighters as of January 1, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
holder's Equity
| Number of | Amount | Paid-in | Retained | Shareholder's | ||
|---|---|---|---|---|---|---|
| Shares | Capital | Earnings | Equity | |||
| Balance at January 1, 2023 | 1,000,000 $ | 100 | $ 800 $ | 2,780,009 | $ 2,780,909 | |
| Net Income | - | - | - | 2,633,230 | 2,633,230 | |
| Balance at December 31, 2023 | 1,000,000 | 100 | 800 | 5,413,239 | 5,414,139 | |
| Shareholder Distributions | - | - | - | (309,603) | (309,603) | |
| Net Income | 1,355,336 | 1,355,336 | ||||
| Balance at December 31, 2024 | 1,000,000 $ | 100 : | $ 800 $ | 6,458,972 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the paid-in capital as of January 1, 2023, was $800. This figure is part of the broader shareholder's equity, which totaled $2,780,909 at that time. The company had 1,000,000 shares authorized, with 1,000,000 shares issued and outstanding, with an amount of $100.
Paid-in capital represents the amount of money Craters & Freighters received from investors in exchange for stock. It's a key component of the company's equity structure and reflects the capital contributed by its owners. For prospective franchisees, understanding the paid-in capital can provide insights into the company's financial stability and how it has been funded.
The FDD also details changes in shareholder's equity during the year. For example, net income for the year was $2,633,230, which increased the retained earnings and overall shareholder's equity. Paid-in capital remained constant throughout the year. This information helps potential franchisees understand how Craters & Freighters manages its finances and generates profits, which can inform their decision-making process.
Reviewing the equity structure and changes in equity over time can give a potential Craters & Freighters franchisee a sense of the company's financial management and investment history. While paid-in capital is just one element of the overall financial picture, it contributes to a more complete understanding of the company's capitalization and financial health.