What were the depreciation and amortization expenses for Craters & Freighters in the year ended December 31?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 5,413,239 | $ 5,414,139 |
Statements of Cash Flows
| Years Ended December 31, | 2023 | 2022 |
|---|---|---|
| Change in Cash and Cash Equivalents: | ||
| Cash Flows from Operating Activities: | ||
| Net Income | $ 2,633,230 $ | 2,437,747 |
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
| From Operatin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the depreciation expense for the year ended December 31, 2023, was $26,134, while for the year ended December 31, 2022, it was $21,995. Amortization expense for the same period totaled $101,989 for the year ended December 31, 2023, and $99,763 for the year ended December 31, 2022.
These figures represent the accounting recognition of the reduction in value of Craters & Freighters' assets over time. Depreciation applies to tangible assets like equipment, while amortization applies to intangible assets like software. These expenses are important for understanding the true cost of operating the business, as they reflect the wearing out or obsolescence of assets used to generate revenue.
For a prospective Craters & Freighters franchisee, understanding these expenses is crucial for financial planning. While these are expenses incurred by the franchisor, they provide insight into the types of assets that are subject to depreciation and amortization. A franchisee can anticipate similar expenses as they acquire assets to operate their own franchise location. Reviewing these figures over several years can also reveal trends in capital expenditures and asset management practices within the Craters & Freighters franchise system.