What was the total cost of Craters & Freighters' investments as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ng is a summary of the investment costs and fair value:
| ι | Gross Jnrealized | U | Gross nrealized | Fair Market | ||
|---|---|---|---|---|---|---|
| December 31, 2024 | Cost | Gains | Losses | Value | ||
| Investments | ||||||
| Money Market Funds | $ 13,787 | $ | - | $ | - : | $ 13,787 |
| Mutual Funds | 11,685 | - | (608) | 11,077 | ||
| Equities and Other Funds | 357,138 | 398,243 | - | 755,381 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total cost of investments as of December 31, 2024, was $382,610. These investments are broken down into several categories: Money Market Funds, Mutual Funds, and Equities and Other Funds. The Money Market Funds had a cost of $13,787, Mutual Funds had a cost of $11,685, and Equities and Other Funds had a cost of $357,138. The fair market value of these investments totaled $780,245 as of the same date.
For a prospective Craters & Freighters franchisee, understanding the franchisor's investment strategy and financial health is crucial. The fact that Craters & Freighters invests in money market funds, mutual funds, and equities suggests a diversified approach. The unrealized gains and losses on these investments can impact the company's overall financial performance, which in turn could affect the support and services they provide to franchisees.
It's also important to note the distinction between the 'cost' of the investments and their 'fair market value'. The fair market value reflects the current worth of the investments, taking into account any gains or losses. In this case, the total fair market value of $780,245 significantly exceeds the total cost of $382,610, indicating a positive return on these investments as of December 31, 2024. This information can provide insights into the financial management and stability of the Craters & Freighters franchise system.
Prospective franchisees might want to inquire further about Craters & Freighters' investment policies, risk management strategies, and how these investments contribute to the long-term stability and growth of the franchise system. Understanding these aspects can help franchisees assess the financial strength and reliability of the franchisor.