What were the credit losses (recovery) 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, | 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 of $30,000 in 2024 and credit losses of $10,000 in 2023.
Credit losses typically arise from uncollectible accounts receivable, representing the portion of revenue that Craters & Freighters was unable to collect from its customers. Conversely, a credit recovery suggests that the company managed to recover previously written-off debts.
The shift from a $10,000 loss in 2023 to a $30,000 recovery in 2024 indicates an improvement in Craters & Freighters's debt collection efforts or a change in the creditworthiness of its customer base. Prospective franchisees should inquire about the factors contributing to this change and the company's policies for managing and recovering credit losses.