What were the distributions to shareholder for Craters & Freighters in 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
holder's Equity
| Number of | Amount | Paid-in | Retained | Shareholder's | ||
|---|---|---|---|---|---|---|
| Shares | Capital | Earnings | Equity | |||
| Balance at January 1, 2023 | 1,000,000 $ | 100 | $ 800 $ | 2,780,009 | $ 2,780,909 | |
| Net Income | - | - | - | 2,633,230 | 2,633,230 | |
| Balance at December 31, 2023 | 1,000,000 | 100 | 800 | 5,413,239 | 5,414,139 | |
| Shareholder Distributions | - | - | - | (309,603) | (309,603) | |
| Net Income | 1,355,336 | 1,355,336 | ||||
| Balance at December 31, 2024 | 1,000,000 $ | 100 : | $ 800 $ | 6,458,972 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, shareholder distributions in 2024 totaled $309,603. This figure is detailed within the statement of shareholder's equity, which tracks changes in the company's equity accounts over time. The statement provides a clear view of how net income and distributions impact the overall shareholder equity.
For a prospective franchisee, understanding shareholder distributions can offer insights into the financial management and profitability of Craters & Freighters. While distributions are a normal part of business, it's helpful to consider the context. For example, consistent distributions alongside healthy retained earnings might indicate strong financial performance. Conversely, large distributions with declining retained earnings could raise concerns about the company's long-term financial stability.
It's important to note that this figure reflects distributions at the franchise company level, not necessarily the financial performance or potential distributions at an individual franchise unit. A potential franchisee should focus on understanding their own unit-level economics and profitability drivers. Reviewing the complete financial statements and consulting with a financial advisor can provide a more comprehensive understanding of Craters & Freighters' financial health.