What was the total value of Craters & Freighters' assets 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 | 1,344,491 | 3,977,155 |
| 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 | 6,458,972 | 5,413,239 |
| Total Shareholder's Equity | 6,459,872 | 5,414,139 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | $ 7,804,363 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's total liabilities and shareholder equity, which equals total assets, was $7,804,363 as of December 31, 2024. This figure represents the sum of all the company's assets, funded by a combination of liabilities (what the company owes to others) and shareholder's equity (the owner's stake in the company).
For a prospective franchisee, this number provides a snapshot of the financial scale of Craters & Freighters. It reflects the resources the company has at its disposal. A higher asset value can indicate a more established and stable franchisor, which may be a positive sign for potential franchisees. However, it's crucial to consider this figure in conjunction with the company's liabilities and equity to understand the true financial health.
It's also important to note the trend in asset value. In 2023, Craters & Freighters' total liabilities and shareholder equity was $9,391,294. The decrease to $7,804,363 in 2024 could be due to a variety of factors, such as decreased liabilities, decreased shareholder equity, or a combination of both. A potential franchisee should investigate the reasons behind this change to assess whether it reflects a strategic shift or potential financial challenges.
Franchisees should also compare Craters & Freighters' asset value to those of other similar franchise systems to gauge its relative size and stability within the industry. Furthermore, examining the components of the assets (e.g., cash, accounts receivable, property, and equipment) can provide a more detailed understanding of where the company's resources are concentrated and how they are being utilized.