What was the gross profit 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, | Amount | % | Amount | % | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Franchise Revenues | $ | 1,791,736 | 30.1 % $ | 2,101,299 | 32.2 9 | |
| Royalty Revenues, net of Royalty Rebates | Ţ | 4,048,135 | 68.2 | 4,232,547 | 66.4 | |
| Initial Franchise Fee and Transfer Fee Revenue | 98,255 | 1.7 | 39,000 | 1.4 | ||
| Total Revenues | 5,938,126 | 100.0 | 6,372,846 | 100.0 | ||
| Costs of Revenues | ||||||
| Franchise Support | 2,036,715 | 1,519,545 | ||||
| Advertising | 957,288 | 951,719 | ||||
| Insurance Program | 733,842 | 737,736 | ||||
| Technology Support | 95,025 | 59,866 | ||||
| Total Costs of Revenues | 3,822,870 | 64.4 % | 3,268,866 | 51.2 % | ||
| Gross Profit | 2,115,256 | 35.6 % | 3,103, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the gross profit for the year ended December 31, 2024, was $2,115,256. This represents 35.6% of total revenues for that year. In comparison, the gross profit for the year ended December 31, 2023, was $3,103,980, which was 48.8% of total revenues.
Gross profit is a key indicator of a company's profitability, representing the revenue remaining after deducting the direct costs associated with providing franchise support, advertising, insurance programs, and technology support. A higher gross profit margin generally indicates greater efficiency in managing these costs.
The decrease in gross profit from 2023 to 2024 could be due to various factors, such as increased costs of revenue or changes in pricing strategies. Prospective franchisees should investigate these changes to understand the underlying reasons and potential impact on their own franchise's profitability. Reviewing these figures allows potential franchisees to assess the financial health and operational efficiency of Craters & Freighters.