What was the depreciation expense for Craters & Freighters in the later of the two years presented?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
|---|---|---|
| From Operating Income: | ||
| Amortization Expense | 101,989 | 99,763 |
| Depreciation Expense | 26,134 | 21,995 |
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the depreciation expense is detailed within the adjustments to reconcile net income to net cash and cash equivalents from operating income. The document lists depreciation expenses for two years.
For the later year, the depreciation expense for Craters & Freighters was $26,134. This figure represents the accounting expense recognized for the wear and tear or obsolescence of the company's assets during that period.
Depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash. However, it reduces the company's reported net income, which can have implications for tax liabilities and financial reporting. Prospective franchisees may want to further investigate how depreciation is calculated and what assets it applies to in order to understand the company's financial health and investment in its assets.