What was the total amount of shareholder distributions for Craters & Freighters during the year 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Number of | Amount | Paid-in | Retained | Shareholder's | ||
|---|---|---|---|---|---|---|
| Shares | Capital | Earnings | Equity | |||
| Balance at January 1, 2023 | 1,000,000 $ | 100 | $ 800 $ | 2,780,009 | $ 2,780,909 | |
| Net Income | - | - | - | 2,633,230 | 2,633,230 | |
| Balance at December 31, 2023 | 1,000,000 | 100 | 800 | 5,413,239 | 5,414,139 | |
| Shareholder Distributions | - | - | - | (309,603) | (309,603) | |
| Net Income | 1,355,336 | 1,355,336 | ||||
| Balance at December 31, 2024 | 1,000,000 $ | 100 : | $ 800 $ | 6,458,972 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, shareholder distributions for the year ending December 31, 2024, totaled $309,603. This figure is detailed within the statement of shareholder's equity, providing a clear view of how profits are allocated to the owners of the company. This distribution impacts the retained earnings, reducing the amount available for reinvestment or other company uses.
For a prospective franchisee, understanding shareholder distributions can offer insights into the financial management and profitability of Craters & Freighters. While distributions reduce retained earnings, they also indicate that the company is generating sufficient profit to reward its shareholders. This can be a positive sign of financial health and stability.
It's important to note that shareholder distributions are not necessarily indicative of the company's ability to support its franchisees. However, it does provide a glimpse into how the company manages its finances and rewards its stakeholders. A potential franchisee should consider this information in conjunction with other financial metrics and performance indicators to assess the overall financial health and stability of Craters & Freighters.