What was the total amount of Inventories for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| As of December 31, | 2024 | 2023 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 5,342,958 $ | 6,991,649 |
| Marketable Securities - At Fair Market Value | 780,245 | 634,869 |
| Accounts Receivable - Net of Allowance for | ||
| Credit Losses of $20,000 and $50,000, Respectively | 702,206 | 569,660 |
| Other Receivable | 132,658 | - |
| Notes Receivable | 11,662 | - |
| Prepaid Expenses | 234,686 | 201,226 |
| Inventories | 7,592 | - |
| Total Current Assets | 7,212,0 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total amount of inventories as of December 31, 2023, was $0.
This indicates that Craters & Freighters had no monetary value assigned to physical goods intended for sale or use in their business operations at the close of 2023. This could be due to the nature of the services Craters & Freighters provides, which may not heavily rely on maintaining a stock of physical inventory.
A prospective franchisee should further investigate the reasons behind the absence of inventories and understand how Craters & Freighters manages its resources to fulfill customer orders without needing to keep a stock of goods. This information can be crucial in assessing the working capital requirements and operational strategies of the franchise.