What were the credit losses (recovery) for Craters & Freighters in 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Years Ended December 31, | 2024 | 2023 |
|---|---|---|
| Change in Cash and Cash Equivalents: | ||
| Cash Flows from Operating Activities: | ||
| Net Income | $ 1,355,336 $ | 2,633,230 |
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
| From Operating Income: | ||
| Amortization Expense | 116,969 | 101 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company experienced a credit recovery in 2024. The FDD states that credit losses (recovery) amounted to ($30,000) in 2024, compared to $10,000 in 2023.
This figure reflects an adjustment to net income in the cash flow statement, specifically within cash flows from operating activities. A negative value, ($30,000), indicates a recovery of previously recognized credit losses. This could be due to the collection of debts that were previously written off or a reduction in the estimated allowance for doubtful accounts.
For a prospective Craters & Freighters franchisee, this information provides insight into the company's handling of credit and debt. The credit recovery suggests that Craters & Freighters has been effective in managing and recovering outstanding receivables. It is important to note that this is a single-year snapshot, and franchisees should consider this information in the context of the company's overall financial performance and credit management practices over several years.