What was the retained earnings amount for Craters & Freighters as of December 31, 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, the company's retained earnings as of December 31, 2024, was $6,458,972. This figure represents the accumulated net income of Craters & Freighters that has been retained for future business purposes rather than being distributed to shareholders as dividends. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in growth or weather economic downturns.
For a prospective Craters & Freighters franchisee, this information provides insight into the financial stability and profitability of the franchisor. A strong retained earnings balance suggests that Craters & Freighters has been successful in generating profits and managing its finances effectively. This can be reassuring for franchisees who are considering investing in the brand, as it indicates that the franchisor is likely to have the resources to support its franchisees and invest in the overall growth of the franchise system.
It's important to note that retained earnings are just one aspect of a company's financial picture. Prospective franchisees should also review other financial statements, such as the balance sheet, income statement, and cash flow statement, to get a comprehensive understanding of Craters & Freighters' financial performance. Additionally, it's advisable to consult with a financial advisor to assess the financial risks and opportunities associated with investing in a Craters & Freighters franchise.
In the franchise industry, franchisors often use retained earnings to fund expansion, develop new products or services, and provide support to franchisees. A healthy retained earnings balance can give a franchisor a competitive advantage and enable it to adapt to changing market conditions. Therefore, the retained earnings figure for Craters & Freighters as of December 31, 2024, is a positive sign for potential franchisees.