What is the interest rate on the loan from the Shareholder to Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
e Board of Directors. For the years ended December 31, 2023 and 2022, the Company elected to contribute $6,321 and $5,028, respectively.
Note 9: Due to Shareholder
In December 2023, the Shareholder provided the Company $5,000,000 to fund future investments. As of December 31, 2023, the Shareholder has taken $2,230,312 in distributions which has been offset against the Shareholder advance. As of December 31, 2023, $2,769,688 remains as outstanding Due to Shareholder. This loan has an interest rate of 2.95% and matures January 1, 2026. There are no payments due on the advance until January 1, 2025. As a result the balance will be considered long term.
Note 10: Reclassifications
Certain reclassifications have been made to the 2022 financial statements to conform to the 2023 presentation.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, in December 2023, a shareholder provided the company with $5,000,000 to fund future investments. As of December 31, 2023, the shareholder had taken $2,230,312 in distributions, which was offset against the shareholder advance. The remaining balance as of December 31, 2023, was $2,769,688.
This loan from the shareholder to Craters & Freighters has an interest rate of 2.95% and a maturity date of January 1, 2026. The FDD specifies that there were no payments due on the advance until January 1, 2025; therefore, the balance was considered long term.
It's important to note that while this loan existed in 2023, the FDD also states that the remaining balance of $2,769,688 was paid in full during the year ended December 31, 2024. As of December 31, 2024, the amount due to the shareholder was $0.