What was the total amount of Prepaid Expenses for Craters & Freighters as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Picture_0.jpeg)
| 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total prepaid expenses as of December 31, 2024, were $234,686. This figure is part of the current assets listed on the balance sheet. For comparison, the prepaid expenses as of December 31, 2023, were $201,226.
Prepaid expenses typically include items like insurance premiums, rent, or advertising costs that Craters & Freighters has paid in advance but not yet fully consumed or utilized. These are considered assets because they represent a future benefit to the company. The increase in prepaid expenses from 2023 to 2024 could indicate that Craters & Freighters made more advance payments for services or goods during 2024.
For a prospective franchisee, understanding the level of prepaid expenses can offer insights into Craters & Freighters' financial management practices. It's also useful to compare these figures with those of other similar franchise systems to assess whether the expenses are in line with industry norms. Reviewing these figures over several years can reveal trends and potential areas of financial strength or weakness.