What was the total amount of Notes Receivable 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 | 7,212,007 | 8,397,404 |
| Property and Equipment - At Cost: | ||
| Office Equipment | 102,860 | 80,613 |
| Furniture and Fixtures | 19,863 | 19,863 |
| Leasehold Improvements | 11,415 | 11,415 |
| Vehicles | 202,688 | 202,688 |
| 336,826 | 314,579 | |
| Less: Accumulated Depreciation | (175,649) | (133,628 |
| Property and Equipment - Net | 161,177 | 180,951 |
| Other Assets: | ||
| Software Development - Net of Accumulated | ||
| Amortization of $434,154 and $317,185, Respectively | 197,251 | 153,931 |
| Due from Related Party | - | 356,391 |
| Notes Receivable | 5,329 | - |
| Note Receivable - Former Employee | 160,000 | 160,000 |
| Right-of-Use Asset - Operating Lease | 56,053 | 130,071 |
| Deposits | 12,546 | 12,546 |
| Total Other Assets | 431,179 | 812,939 |
| TOTAL ASSETS | $ 7,804,363 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2023, the company's Notes Receivable were broken down into two categories. The first category, simply labeled "Notes Receivable," had a balance of $0. The second category, "Note Receivable - Former Employee," had a balance of $160,000. Therefore, the total value of notes receivable as of December 31, 2023 was $160,000.
For a prospective franchisee, understanding the nature and collectability of notes receivable is crucial. Notes receivable represent money owed to Craters & Freighters, and their value depends on the likelihood of repayment. The note from the former employee may have specific terms and conditions regarding repayment, which could impact its actual value.
It is important to note that the "Due from Related Party" balance of $356,391 is listed separately from notes receivable. This amount represents money owed to Craters & Freighters by Craters & Freighters Platinum, a related party through common ownership. While this is also an amount receivable by Craters & Freighters, it is not categorized as a note receivable in the balance sheet.