What was the depreciation expense for Craters & Freighters for the year ended December 31, 2022?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the depreciation expense for the years ended December 31, 2023 and 2022 was $26,132 and $21,993, respectively. Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. It represents the reduction in value of an asset over time due to wear and tear, obsolescence, or other factors.

For a prospective Craters & Freighters franchisee, understanding depreciation expense is important for assessing the profitability and financial health of the company. It provides insight into how the company manages its assets and investments in property, plant, and equipment. Lower depreciation expenses may indicate newer assets or longer useful lives, while higher expenses may suggest older assets or shorter useful lives.

In addition to depreciation expense, the FDD also mentions amortization expense related to software development. Amortization expense for the years ended December 31, 2023 and 2022 totaled $101,989 and $99,763, respectively. Amortization is similar to depreciation but applies to intangible assets, such as software. These expenses are important to consider when evaluating the overall financial performance of Craters & Freighters.