What was the total amount of shareholder distributions for Craters & Freighters during the 2022 fiscal year?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
37,747 | 36.4 % |
Statements of Shareholder's Equity
| Number of | Amount | Paid-in | Retained | Shareholder's | |
|---|---|---|---|---|---|
| Shares | Capital | Earnings | Equity | ||
| Balance at January 1, 2022 | 1,000,000 $ | 100 | $ 800 $ | 2,922,499 | $ 2,923,399 |
| Shareholder Distributions | - | - | - | (2,580,237) | (2,580,237) |
| Net Income | - | - | - | 2,437,747 | 2,437, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total shareholder distributions for the company during the year 2022 were $2,580,237. This information is derived from the statement of changes in shareholder's equity.
For a prospective franchisee, shareholder distributions are an important indicator of how the company allocates its profits. A high distribution amount could mean that the company is returning significant value to its owners, which might be seen positively. However, it is also crucial to assess whether these distributions impact the company's ability to reinvest in growth, support franchisees, or maintain a healthy financial cushion for unforeseen circumstances.
It is also important to note that while a large distribution occurred in 2022, in December 2023, a Shareholder provided the Company $5,000,000 to fund future investments. During the year ended December 31, 2023, the Shareholder took $2,230,312 in distributions which has been offset against the Shareholder advance. At December 31, 2023, $2,769,688 remained as a balance with a maturity date of January 1, 2026. The remaining balance of $2,769,688 was paid in full during the year ended December 31, 2024. As of December 31, 2024, the amount due to shareholder was $0.
Franchisees should consider these figures in the context of Craters & Freighters' overall financial health, including revenues, expenses, and retained earnings. Consulting with a financial advisor to understand the implications of these distributions is advisable.