What was the amount of shareholder distributions 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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the shareholder distributions for the company in 2022 totaled $2,580,237. This figure represents the amount of money distributed to the shareholders from the company's retained earnings during that year. These distributions reduce the retained earnings of Craters & Freighters, as reflected in the balance sheet.
For a prospective franchisee, understanding shareholder distributions can provide insight into the financial management and profitability of Craters & Freighters. A large distribution could indicate strong profitability, but it could also raise questions about the company's reinvestment strategy. It's important to consider this figure in the context of the company's overall financial health and future plans.
It is also important to note that in December 2023, the Shareholder provided Craters & Freighters $5,000,000 to fund future investments. During the year ended December 31, 2023, the Shareholder took $2,230,312 in distributions which has been offset against the Shareholder advance. At December 31, 2023, $2,769,688 remained as a balance with a maturity date of January 1, 2026. The remaining balance of $2,769,688 was paid in full during the year ended December 31, 2024. As of December 31, 2024, the amount due to shareholder was $0.