What was the total long-term liabilities amount for Craters & Freighters as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| As of December 31, | 2024 | 2023 |
|---|---|---|
| 18 of December 31, | 2021 | 2023 |
| Current Liabilities: | ||
| Accounts Payable | $ 1,181,960 $ | 1,061,526 |
| Accrued Wages and Other Liabilities | 32,282 | 1,790 |
| Due to Related Party | 65,000 | - |
| Operating Lease Liability - Due Within One Year | 65,249 | 76,496 |
| Total Current Liabilities | 1,344,491 | 1,139,812 |
| Long Torm Liabilities | ||
| Long Term Liabilities: Due to Shareholder | 2,769,688 | |
| Operating Lease Liability - Due After One Year | - | 67,655 |
| Total Long-Term Liabilities | - | 2,837,373 |
| Total Liabilities | 1,344,4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the total long-term liabilities as of December 31, 2024, was zero. The provided balance sheet shows a line for "Total Long-Term Liabilities" with a value of "-" for the year 2024.
In contrast, the balance sheet also indicates that as of December 31, 2023, Craters & Freighters had total long-term liabilities of $2,837,373. These liabilities consisted of $2,769,688 due to a shareholder and $67,655 related to an operating lease liability due after one year. The amount due to the shareholder was paid in full during the year ended December 31, 2024, resulting in the zero balance for long-term liabilities at the end of 2024.
Prospective franchisees should note the significant change in Craters & Freighters' long-term liabilities from 2023 to 2024. This could reflect a substantial improvement in the company's financial health and stability. Reviewing the complete financial statements and notes is essential to understand the reasons behind this change and its potential impact on the franchise system.