What was the total amount of Office Equipment for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
i LLP
Denver, Colorado April 10, 2024
Balance Sheets
| As of December 31, | 2023 | 2022 | |-------------------------------------------------------|-----------------------|-----------| | Current Assets: | | | | Cash and Cash Equivalents | $ 6,991,649 $ | 2,376,316 | | Marketable Securities - At Fair Market Value | 634,869 | 528,625 | | Accounts Receivable - Net of Allowance for | | | | Credit Losses of $50,000 and $40,000, Respectively | 569,660 | 717,990 | | Prepaid Expenses | 201,226 | 34,611 | | Total Current Assets | 8,397,404 | 3,657,542 | | Property and Equipment - At Cost: | | | | Office Equipment | 80,614 | 80,613 | | Furniture and Fixtures | 19,862 | 19,863 | | Leasehold Improvements | 11,415 | 11,415 | | Vehicles | 202,688 | 215,039 | | | 314,579 | 326,930 | | Less: Accumulated Depreciation | (133,628) | (225,263) | | Property and Equipment - Net | 180,951 | 101,667 | | Other Assets: | | | | Software Development - Net of Accumulated | | | | Amortization of $317,185 and $215,196, Respectively | 153,931 | 142,272 | | Due from Related Party | 356,391 | 193,314 | | Note Receivable | 160,000 | 60,000 | | Right-of-Use Asset - Operating Lease | 130,071 | 203,307 | | Deposits | 12,546 | 12,546 | | Total Other Assets | 812,939 | 611,439 | | TOTAL ASSETS | $ 9,391,294 $ | 4,370,648 | 
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total amount of office equipment as of December 31, 2023, was $80,613. This figure represents the original cost of the office equipment before accounting for any depreciation.
For a prospective franchisee, this indicates the historical investment Craters & Freighters has made in its own office equipment. While this isn't the franchisee's initial investment, it provides a benchmark for understanding the scale of equipment needed to operate the business. It's important to note that this figure does not reflect the net book value (original cost less accumulated depreciation), which would give a more accurate picture of the equipment's current value.
It's also worth noting that the accumulated depreciation for office equipment as of December 31, 2023, was $80,613, resulting in a net book value of zero for the office equipment. This could mean that the equipment was fully depreciated or disposed of. A potential franchisee should inquire about the typical lifecycle of office equipment and the expected costs of replacing or upgrading such equipment over time. This information will be helpful in forecasting future capital expenditures.