What was the balance of the note receivable from the Craters & Freighters employee loan as of December 31, 2023?
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 | 160,000 | 160,000 |
| Right-of-Use Asset - Operating Lease | 56,053 | 130,071 |
| Deposits | 12,546 | 12,546 |
| Total Other Assets | 431,179 | 812,939 |
| TOTAL ASSETS | $ 7,804,363 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the balance of the note receivable from a former employee was $160,000 as of December 31, 2023. This indicates that Craters & Freighters had an outstanding loan to a former employee at that time.
For a prospective franchisee, this information provides insight into Craters & Freighters' financial practices, specifically their involvement in employee loans. It's important to note that this is a snapshot in time, and the current status of the loan may have changed since then.
Franchisees may want to inquire about the terms of the loan, the reasons for providing such loans, and the company's policies regarding similar financial arrangements. Understanding these practices can help a franchisee assess the financial stability and management style of Craters & Freighters.