What amounts were owed to Craters & Freighters by Craters & Freighters Platinum as of December 31, 2023 and 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Software Development Costs | $ 471,116 $ | 357,468 |
| Less: Accumulated Amortization | (317,185) | (215,196) |
| $ 153,931 $ | 142,272 |
Note 5: Due from Related Party
The Company provides shared services and advances to a related party through common ownership. As of December 31, 2023 and 2022, the Company was owed $356,391 and $1
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company was owed $356,391 from Craters & Freighters Platinum as of December 31, 2023, and $193,314 as of December 31, 2022. These amounts stem from shared services and advances provided to Craters & Freighters Platinum, a related party due to common ownership.
Since these borrowings are considered short-term, Craters & Freighters does not charge interest on the outstanding balances. This arrangement suggests a close financial relationship between Craters & Freighters and Craters & Freighters Platinum, potentially impacting the financial performance of both entities.
A prospective franchisee should further investigate the nature of these shared services, the repayment terms, and the potential impact on Craters & Freighters' financial stability. Understanding the details of these related-party transactions is crucial for assessing the overall financial health and risk associated with investing in a Craters & Freighters franchise.