factual

What were the total advertising expenses for Craters & Freighters for the year ended December 31, 2024?

Craters_Freighters Franchise · 2025 FDD

Answer 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 % 3,103,980 48.8 %
General and Administrative Expenses
Depreciation and Amortization 158,990 128,123
Credit Losses (Recovery) (30,000) 10,000
Bank Charges 11,002 5,271
Donations 57,300 57,863
Dues and Subscriptions 5,273 1,553
Employee Benefits 12,158 12,081
Equipment 31,246 42,542
Insurance 75,629 75,156
Legal and Professional Fees 328,824 216,207
Office Supplies 30,584 104,945
Rent 81,856 94,143
Repairs and Maintenance 164,272 11,668
IT and Software 121,168 52,324
Taxes and Licenses 1,978 1,978
Telephone and Utilities 45,458 63,012
Travel and Entertainment 67,796 25,568
Total General and 07,730 23,300
Administrative Expenses 1,163,534 19.6 % 902,434 14.1 %
ncome from Operations 951,722 16.0 % 2,201,546 34.5 %
Other Income (Expense)
Shared Services Revenue 133,347 290,000
Interest Income 110,402 19,711
Interest Expense (628) -
Investment Income 26,159 13,827
Investment Expenses (1,203) (5,598)
Gain on Sale of Marketable Securities 26 841
Unrealized Holding Gain (Loss) on
Marketable Securities 135,511 97,174
Gain on Disposal of Property and Equipment 15,729
Other Income (Expense) - Net 403,614 6.8 % 431,684 6.8 %
NET INCOME $ 1,355,336 22.8 % $ 2,633,

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's advertising expenses for the year ending December 31, 2024, totaled $957,288. This figure is part of the costs of revenues, which also include franchise support, insurance program costs, and technology support.

For a prospective franchisee, this indicates the level of investment Craters & Freighters is making in advertising at the corporate level. It is important to understand whether these advertising expenses translate into tangible benefits for individual franchisees, such as increased brand awareness or customer leads. Franchisees should inquire about the specific advertising strategies employed by Craters & Freighters and how these strategies are designed to support their local businesses.

It's also useful to compare this figure with the advertising expenses from the previous year. In 2023, Craters & Freighters spent $951,719 on advertising, showing a slight increase in advertising expenditure in 2024. Franchisees should consider this information in the context of overall revenue and profitability to assess the effectiveness of the advertising spend. Furthermore, franchisees should clarify what portion of advertising costs are borne by the franchisor versus the franchisee.

Understanding the advertising expenditure is crucial for potential franchisees to evaluate the marketing support they can expect from Craters & Freighters. It is important to investigate the types of advertising activities covered under this expense, such as digital marketing, print media, or other promotional campaigns, and how these activities align with the franchisee's local marketing needs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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