What were the bank charges for Craters & Freighters in the year ended December 31?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Years Ended December 31, | Amount | % | Amount | % | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Franchise Revenues | $ | 1,791,736 | 30.1 % $ | 2,101,299 | 32.2 9 | |
| Royalty Revenues, net of Royalty Rebates | Ţ | 4,048,135 | 68.2 | 4,232,547 | 66.4 | |
| Initial Franchise Fee and Transfer Fee Revenue | 98,255 | 1.7 | 39,000 | 1.4 | ||
| Total Revenues | 5,938,126 | 100.0 | 6,372,846 | 100.0 | ||
| Costs of Revenues | ||||||
| Franchise Support | 2,036,715 | 1,519,545 | ||||
| Advertising | 957,288 | 951,719 | ||||
| Insurance Program | 733,842 | 737,736 | ||||
| Technology Support | 95,025 | 59,866 | ||||
| Total Costs of Revenues | 3,822,870 | 64.4 % | 3,268,866 | 51.2 % | ||
| Gross Profit | 2,115,256 | 35.6 % | 3,103,980 | 48.8 % | ||
| General and Administrative Expenses | ||||||
| Depreciation and Amortization | 158,990 | 128,123 | ||||
| Credit Losses (Recovery) | (30,000) | 10,000 | ||||
| Bank Charges | 11,002 | 5,271 | ||||
| Donations | 57,300 | 57,863 | ||||
| Dues and Subscriptions | 5,273 | 1,553 | ||||
| Employee Benefits | 12,158 | 12,081 | ||||
| Equipment | 31,246 | 42,542 | ||||
| Insurance | 75,629 | 75,156 | ||||
| Legal and Professional Fees | 328,824 | 216,207 | ||||
| Office Supplies | 30,584 | 104,945 | ||||
| Rent | 81,856 | 94,143 | ||||
| Repairs and Maintenance | 164,272 | 11,668 | ||||
| IT and Software | 121,168 | 52,324 | ||||
| Taxes and Licenses | 1,978 | 1,978 | ||||
| Telephone and Utilities | 45,458 | 63,012 | ||||
| Travel and Entertainment | 67,796 | 25,568 | ||||
| Total General and | 07,730 | 23,300 | ||||
| Administrative Expenses | 1,163,534 | 19.6 % | 902,434 | 14.1 % | ||
| ncome from Operations | 951,722 | 16.0 % | 2,201,546 | 34.5 % | ||
| Other Income (Expense) | ||||||
| Shared Services Revenue | 133,347 | 290,000 | ||||
| Interest Income | 110,402 | 19,711 | ||||
| Interest Expense | (628) | - | ||||
| Investment Income | 26,159 | 13,827 | ||||
| Investment Expenses | (1,203) | (5,598) | ||||
| Gain on Sale of Marketable Securities | 26 | 841 | ||||
| Unrealized Holding Gain (Loss) on | ||||||
| Marketable Securities | 135,511 | 97,174 | ||||
| Gain on Disposal of Property and E |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's bank charges for the year ending December 31, 2024, amounted to $11,002. In the previous year, ending December 31, 2023, these charges were $5,271.
These figures reflect the direct costs Craters & Freighters incurred for banking services, such as transaction fees, account maintenance fees, or charges related to credit lines. For a prospective franchisee, understanding these costs is crucial as it provides insight into the overhead expenses associated with running the franchise. Monitoring these charges and comparing them against industry benchmarks can help franchisees assess the efficiency of their banking relationships and identify potential areas for cost savings.
It's worth noting that bank charges can fluctuate based on transaction volume, the types of services used, and the negotiated terms with the bank. Therefore, a prospective Craters & Freighters franchisee should inquire about the factors that contribute to these charges and how they might vary based on their specific business operations.