What was the amount of shareholder equity for Craters & Freighters at the end of the 2022 fiscal year?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 9,391,294 $ | 4,370,648 |
Balance Sheets (Continued)
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Liabilities: | ||
| Accounts Payable | $ 1,061,526 $ | 1,241,420 |
| Accrued Liabilities | 1,790 | 458 |
| Accrued Bonus | - | 132,340 |
| Operating Lease Liability - Due Within One Year | 76,496 | 73,646 |
| Total Current Liabilities | 1,139,812 | 1,447,864 |
| Long Term Liabilities: | ||
| Due to Shareholder | 2,769,688 | - |
| Operating Lease Liability - Due After One Year | 67,655 | 141,875 |
| Total Long-Term Liabilities | 2,837,343 | 141,875 |
| Total Liabilities | 3,977,155 | 1,589,739 |
| Shareholder's Equity | ||
| Common Stock, No Par Value; 1,000,000 Shares | ||
| Authorized; 1,000,000 Shares Issued and Outstanding | 100 | 100 |
| Additional Paid-in Capital | 800 | 800 |
| Retained Earnings | 5,413,239 | 2,780,009 |
| Total Shareholder's Equity | 5,414,139 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the company's shareholder equity at the end of the 2022 fiscal year was $2,780,909. This figure represents the total investment in the company by its shareholders, including common stock, additional paid-in capital, and retained earnings.
Specifically, the shareholder's equity is calculated by adding the value of common stock ($100), additional paid-in capital ($800), and retained earnings ($2,780,009). This total reflects the net assets attributable to the shareholders after deducting all liabilities from the company's total assets.
For a prospective franchisee, understanding the shareholder equity can provide insight into the financial stability and long-term viability of Craters & Freighters. A healthy shareholder equity indicates that the company has a strong financial foundation and is less reliant on debt financing. This can be a positive indicator for franchisees, suggesting that Craters & Freighters is well-positioned to support its franchise network and invest in future growth.