What was the shared services revenue 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's shared services revenue for the year ending December 31, 2024, was $133,347. In the previous year, ending December 31, 2023, the shared services revenue totaled $290,000. This represents a decrease in shared services revenue from 2023 to 2024.
Shared services revenue is categorized under 'Other Income (Expense)' in the financial statements. This revenue is in addition to the standard revenue streams for Craters & Freighters, such as franchise revenues, royalty revenues, and initial franchise fee revenue. Understanding the fluctuations in shared services revenue can provide insight into the company's diversified income streams and its reliance on related-party transactions.
A prospective franchisee should consider the nature and consistency of this revenue when evaluating the financial health of Craters & Freighters. It would be prudent to inquire about the specific services provided and the terms of these related-party transactions to assess their potential impact on the franchisor's overall financial performance.