What was the total cost of office equipment owned by Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, 2023 | Cost | Accumulated Depreciation | Net Book Value | |
|---|---|---|---|---|
| Office Equipment | $ 80,613 | $ 80,613 | $ | - |
| Furniture and Fixtures | 19,863 | 19,863 | - | |
| Leasehold Improvements | 11,415 | 11,415 | - | |
| Vehicles | 202,688 | 21,737 | 180,951 | |
| $ 314,579 | $ 133,628 | $ | 180,951 | |
| As of December 31, 2022 | Cost | Accumulated Depreciation | Net Book |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the cost of office equipment as of December 31, 2022, was $80,613. This figure represents the original purchase price of the office equipment before any depreciation was accounted for.
For a prospective franchisee, this information provides insight into the capital investment Craters & Freighters has made in its own corporate operations. While franchisees will need to acquire their own equipment, seeing the franchisor's investment can offer a benchmark. It's important to note that the accumulated depreciation on this equipment was also $80,613, resulting in a net book value of zero for the office equipment as of that date.
Franchisees should consider this data in the context of the overall financial health of Craters & Freighters. Reviewing the depreciation alongside the original cost helps to understand the age and value of the assets. This information, combined with other financial statement details, can assist potential franchisees in assessing the financial stability and investment strategies of the Craters & Freighters franchise system.