What was the total shareholder's equity for Craters & Freighters at the end 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' 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 is an indicator of the financial stability and overall health of Craters & Freighters. A higher shareholder's equity generally suggests a stronger financial position, which can be reassuring for franchisees who are investing in the brand. It reflects the accumulated profits and investments made in the company over time.
It's important to note that while shareholder's equity provides a snapshot of the company's financial position at a specific point in time, it doesn't necessarily reflect its future performance or potential risks. Franchisees should consider this figure in conjunction with other financial metrics and information provided in the FDD, such as revenue trends, debt levels, and cash flow statements, to gain a comprehensive understanding of Craters & Freighters' financial health. Additionally, comparing this figure to previous years can reveal trends in the company's equity growth or decline, offering further insights into its financial management and performance.