What was the total franchise revenue for Craters & Freighters for the year ended December 31, 2023?
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 |
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 ended December 31, 2023, consisted of three components: franchise revenues, royalty revenues net of royalty rebates, and initial franchise and transfer fee revenue. Franchise revenues amounted to $1,791,736, representing 30.1% of the total. Royalty revenues, net of royalty rebates, totaled $4,048,135, which accounted for 68.2% of the total. Initial franchise fee and transfer fee revenue contributed $98,255, making up 1.7% of the total.
In summary, Craters & Freighters' total revenues for the year ended December 31, 2023, were derived from these three primary sources, with royalty revenues being the most significant contributor. The franchise revenues and initial fees made up a smaller percentage of the total revenue. These figures provide insight into the revenue streams of Craters & Freighters, highlighting the importance of ongoing royalty collection from franchisees in addition to initial franchise fees.
Prospective franchisees should consider these revenue figures in the context of their own business plans and financial projections. Understanding the breakdown between franchise revenues, royalty revenues, and initial fees can help franchisees assess the potential for growth and profitability within the Craters & Freighters system. Additionally, it's important to note that these figures reflect the franchisor's revenue, not the revenue of individual franchise locations.