What was the total cost of advertising for Craters & Freighters for the year ended December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Years Ended December 31, | Amount | % | Amount | % | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Franchise Revenues | $ | 1,791,736 | 30.1 % $ | 2,101,299 | 32.2 9 | |
| Royalty Revenues, net of Royalty Rebates | Ţ | 4,048,135 | 68.2 | 4,232,547 | 66.4 | |
| Initial Franchise Fee and Transfer Fee Revenue | 98,255 | 1.7 | 39,000 | 1.4 | ||
| Total Revenues | 5,938,126 | 100.0 | 6,372,846 | 100.0 | ||
| Costs of Revenues | ||||||
| Franchise Support | 2,036,715 | 1,519,545 | ||||
| Advertising | 957,288 | 951,719 | ||||
| Insurance Program | 733,842 | 737,736 | ||||
| Technology Support | 95,025 | 59,866 | ||||
| Total Costs of Revenues | 3,822,870 | 64.4 % | 3,268,866 | 51.2 % | ||
| Gross Profit | 2,115,256 | 35.6 % | 3,103,980 | 48.8 % | ||
| General and Administrative Expenses | ||||||
| Depreciation and Amortization | 158,990 | 128,123 | ||||
| Credit Losses (Recovery) | (30,000) | 10,000 | ||||
| Bank Charges | 11,002 | 5,271 | ||||
| Donations | 57,300 | 57,863 | ||||
| Dues and Subscriptions | 5,273 | 1,553 | ||||
| Employee Benefits | 12,158 | 12,081 | ||||
| Equipment | 31,246 | 42,542 | ||||
| Insurance | 75,629 | 75,156 | ||||
| Legal and Professional Fees | 328,824 | 216,207 | ||||
| Office Supplies | 30,584 | 104,945 | ||||
| Rent | 81,856 | 94,143 | ||||
| Repairs and Maintenance | 164,272 | 11,668 | ||||
| IT and Software | 121,168 | 52,324 | ||||
| Taxes and Licenses | 1,978 | 1,978 | ||||
| Telephone and Utilities | 45,458 | 63,012 | ||||
| Travel and Entertainment | 67,796 | 25,568 | ||||
| Total General and | 0 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total advertising costs for the year ended December 31, 2022, were $951,719. This figure represents the expenses Craters & Freighters incurred for advertising-related activities during that fiscal year.
For a prospective franchisee, understanding the franchisor's advertising expenditure is crucial. It provides insight into the level of support Craters & Freighters provides in terms of marketing and brand awareness. A significant investment in advertising can help drive business to individual franchise locations.
However, it is important for potential franchisees to investigate further into the specifics of these advertising expenses. They should inquire about the types of advertising activities included (e.g., digital marketing, print ads, national campaigns), how these activities benefit franchisees directly, and whether franchisees are required to contribute to an advertising fund. Understanding the allocation and effectiveness of these advertising dollars is essential for making an informed investment decision.