What was the total shareholder's equity for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 9,391,294 $ | 4,370,648 |
Balance Sheets (Continued)
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Liabilities: | ||
| Accounts Payable | $ 1,061,526 $ | 1,241,420 |
| Accrued Liabilities | 1,790 | 458 |
| Accrued Bonus | - | 132,340 |
| Operating Lease Liability - Due Within One Year | 76,496 | 73,646 |
| Total Current Liabilities | 1,139,812 | 1,447,864 |
| Long Term Liabilities: | ||
| Due to Shareholder | 2,769,688 | - |
| Operating Lease Liability - Due After One Year | 67,655 | 141,875 |
| Total Long-Term Liabilities | 2,837,343 | 141,875 |
| Total Liabilities | 3,977,155 | 1,589,739 |
| Shareholder's Equity | ||
| Common Stock, No Par Value; 1,000,000 Shares | ||
| Authorized; 1,000,000 Shares Issued and Outstanding | 100 | 100 |
| Additional Paid-in Capital | 800 | 800 |
| Retained Earnings | 5,413,239 | 2,780,009 |
| Total Shareholder's Equity | 5,414,139 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the total shareholder's equity as of December 31, 2023, was $5,414,139. This figure represents the net worth of Craters & Freighters from the perspective of its shareholders, calculated by subtracting total liabilities from total assets. It includes common stock valued at $100, additional paid-in capital of $800, and retained earnings of $5,413,239.
For a prospective franchisee, shareholder's equity can be an indicator of the company's financial stability and overall health. A higher shareholder's equity generally suggests a stronger financial position, meaning Craters & Freighters has more assets than liabilities. This can provide reassurance about the company's ability to meet its financial obligations and invest in future growth.
It is important to note that while shareholder's equity provides a snapshot of the company's financial position at a specific point in time, it does not reflect the company's future performance or potential risks. Franchisees should consider this information in conjunction with other financial metrics and qualitative factors when evaluating the franchise opportunity. Reviewing trends in shareholder's equity over several years, as well as understanding the components of equity (common stock, paid-in capital, and retained earnings), can offer a more comprehensive view of the company's financial management and long-term prospects.