factual

What were the total costs of revenues for Craters & Freighters in the year ended December 31?

Craters_Freighters Franchise · 2025 FDD

Answer 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 07,730 23,300
Administrative Expenses 1,163,534 19.6 % 902,434 14.1 %
ncome from Operations 951,722 16.0 % 2,201,546 34.5 %
Other Income (Expense)
Shared Services Revenue 133,347 290,000
Interest Income 110,402 19,711
Interest Expense (628) -
Investment Income 26,159 13,827
Investment Expenses (1,203) (5,598)
Gain on Sale of Marketable Securities 26 841
Unrealized Holding Gain (Loss) on
Marketable Securities 135,511 97,174
Gain on Disposal of Property and Equipment 15,729
Other Income (Expense) - Net 403,614 6.8 % 431,684 6.8 %
NET INCOME $ 1,355,336 22.8 % $ 2,633,

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, the total costs of revenues for the year ending December 31, 2024, amounted to $3,822,870, representing 64.4% of total revenues. For the year ending December 31, 2023, the total costs of revenues were $3,268,866, which was 51.2% of total revenues. These costs include franchise support, advertising, insurance program, and technology support.

For a prospective Craters & Freighters franchisee, understanding the breakdown of these costs is crucial. Franchise support, advertising, insurance, and technology are key components that franchisees benefit from, and these figures provide insight into the scale of investment Craters & Freighters makes in these areas. The increase in total costs of revenues from 2023 to 2024 suggests potential growth and investment in these support systems.

It's important to note that these costs are directly related to supporting the franchise network and generating revenue. A higher percentage of costs of revenues relative to total revenues could indicate increased investment in franchisee support or potentially lower efficiency. Conversely, a lower percentage might suggest cost-cutting measures or higher operational efficiency. Franchisees should evaluate these figures in the context of the overall financial performance of Craters & Freighters and assess whether the level of support justifies the associated costs.

Prospective franchisees should also compare these figures with industry benchmarks to determine whether Craters & Freighters' cost structure is competitive. Additionally, they should inquire about the specific services and resources included in each cost category to fully understand the value they will receive for their franchise fees and royalties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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