factual

What were the total general and administrative expenses 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 general and administrative expenses for the year ending December 31, 2024, were $1,163,534, representing 19.6% of total revenues. For the year ending December 31, 2023, these expenses totaled $902,434, which was 14.1% of total revenues. This indicates an increase in general and administrative expenses from 2023 to 2024.

These expenses encompass various operational costs, including depreciation and amortization, credit losses (or recovery), bank charges, donations, dues and subscriptions, employee benefits, equipment, insurance, legal and professional fees, office supplies, rent, repairs and maintenance, IT and software, taxes and licenses, telephone and utilities, and travel and entertainment. The most significant components of these expenses in 2024 were legal and professional fees ($328,824) and repairs and maintenance ($164,272).

For a prospective franchisee, understanding these figures is crucial as they reflect the overhead costs Craters & Freighters incurs to support its franchise system. While franchisees do not directly pay these expenses, they are factored into the overall financial health and stability of the franchisor. A significant increase in these expenses, as seen from 2023 to 2024, could impact the franchisor's profitability and potentially influence future fees or support services provided to franchisees. Therefore, it would be prudent for potential franchisees to inquire about the reasons behind the increase in general and administrative expenses and how Craters & Freighters plans to manage these costs moving forward.

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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