What was the total franchise revenue for Craters & Freighters in the year ended December 31?
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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total revenues for the year ending December 31, 2024, were $5,938,126. This figure comprises several revenue streams, including franchise revenues of $1,791,736, royalty revenues (net of royalty rebates) of $4,048,135, and initial franchise and transfer fee revenue of $98,255. These revenues represent 100% of the total revenue for that year.
For a prospective franchisee, understanding the composition of Craters & Freighters' revenue is crucial. Franchise revenues specifically refer to the income Craters & Freighters earns directly from its franchisees, while royalty revenues are ongoing fees paid by franchisees based on their sales. Initial franchise and transfer fees are one-time payments made by new franchisees or when a franchise is transferred to a new owner. The document also shows the total revenues for the year ending December 31, 2023, were $6,372,846.
It's important to note that while total revenues provide an overview of Craters & Freighters' financial performance, they don't reflect profitability. The document also details the costs of revenues, including franchise support, advertising, insurance program, and technology support, which totaled $3,822,870 for 2024. A prospective franchisee should carefully review these expenses to understand the franchisor's cost structure and how it impacts the overall financial health of the company. Understanding these figures helps potential franchisees assess the financial stability and revenue generation capabilities of Craters & Freighters.