What was the gross unrealized loss for Mutual Funds for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2: Marketable Securities (Continued)
As of December 31, 2023 and 2022, the following is a summary of the investment costs and fair value:
| Gross | Gross | |||
|---|---|---|---|---|
| Unrealized | Unrealized | Fair Market | ||
| December 31, 2023 | Cost | Gains | Losses | Value |
| Investments | ||||
| Money Market Funds | $ 32,240 | $ - | $ - | $ 32,240 |
| Mutual Fund |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2023, the gross unrealized loss for Mutual Funds was $1,500. At that time, the cost of Mutual Funds was $11,685, with a fair market value of $10,185. There were no gross unrealized gains for Mutual Funds.
It is important to note that unrealized losses reflect a decrease in the value of an investment that has not yet been sold. This means that Craters & Freighters experienced a paper loss on its mutual fund investments, but this loss would only be realized if the investments were actually sold at that lower value.
For a prospective franchisee, this information provides insight into how Craters & Freighters manages its investments. While unrealized losses can occur, it's crucial to consider the overall investment strategy and how the company manages its assets. Reviewing financial statements and understanding investment performance can help potential franchisees assess the financial health and stability of the franchisor.