What was the total cost of vehicles owned by Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
in the valuation methodology from the prior year.
Notes to Financial Statements
Note 3: Property and Equipment
| As of December 31, 2023 | Cost | Accumulated Depreciation | Net Book Value | |
|---|---|---|---|---|
| Office Equipment | $ 80,613 | $ 80,613 | $ | - |
| Furniture and Fixtures | 19,863 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2023, the total cost of vehicles owned by Craters & Freighters was $202,688. After accounting for accumulated depreciation of $21,737, the net book value of these vehicles was $180,951.
This information is derived from the company's balance sheet, which provides a snapshot of its assets, liabilities, and equity at a specific point in time. The vehicle cost represents the original purchase price of the vehicles, while accumulated depreciation reflects the amount of the vehicle's value that has been expensed over time due to wear and tear or obsolescence.
For a prospective Craters & Freighters franchisee, understanding the company's asset base, including the value of its vehicles, can provide insights into its financial health and operational capacity. It's important to note that the net book value may not reflect the actual market value of the vehicles, as it is based on historical cost and depreciation methods. Franchisees may want to inquire about the types of vehicles owned and their usage to better understand their role in the business operations.