What was the depreciation expense for All County in 2024?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| Retained Earnings (Deficit) | 195,251 | (110,516) | 45,901 | | STOCKHOLDERS' EQUITY (DEFICIT) | 337,459 | 31,692 | 188,109 | | TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) | $ 470,860 | $ 195,181 | $ 236,144 | | | | | |
Statements of Income
For Years Ended December 31, 2024, 2023, & 2022
| Year 2024 | Year 2023 | Year 2022 | |
|---|---|---|---|
| REVENUES | |||
| Sales of Franchises | $ 315,000 | $ 416,000 | $ 365,000 |
| Royalities, Training, & Other Income | 2,775,999 | 2,402,475 | 2,014,123 |
| Other Income | - | 2,346 | - |
| Total Revenues | 3,090,999 | 2,820,821 | 2,379,123 |
| OPERATING EXPENSES | |||
| Facilities & Office Space Support | 115,813 | 191,663 | 111,396 |
| General & Administrative Expenses | 594,010 | 593,358 | 482,846 |
| Marketing & Selling Expenses | 505,096 | 611,723 | 607,828 |
| Payroll & Related Expenses | 1,005,553 | 920,699 | 826,294 |
| Travel & Related Expenses | 426,014 | 310,958 | 218,172 |
| Total Expenses | 2,646,486 | 2,628,401 | 2,246,536 |
| OPERATING INCOME (LOSS) | 444,513 | 192,420 | 132,587 |
| OTHER INCOME (EXPENSES) | |||
| Depreciation Expense | (21,008) | (1,399) | - |
| Interest Expense - Operations | - | (1,080) | (1,432) |
| Total Other Income (Expenses) | (21,008) | (2,479) | (1,432) |
| NATIONA |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the depreciation expense for the company in 2024 was $21,008. This figure represents the accounting method of allocating the cost of tangible assets over their useful life. In simpler terms, it reflects the reduction in value of All County's assets like equipment and furniture due to wear and tear or obsolescence during the year.
For a prospective All County franchisee, understanding depreciation is important for assessing the financial health and stability of the franchisor. While the franchisee's own depreciation expenses will depend on their specific assets, the franchisor's depreciation can indicate how the company manages its assets and investments. A consistently high depreciation expense might suggest significant investments in assets, while a very low expense could indicate older assets or conservative accounting practices.
It's also worth noting that depreciation is a non-cash expense, meaning it doesn't involve an actual outflow of cash. Instead, it's an accounting adjustment that reflects the decline in asset value. This distinction is important when analyzing All County's cash flow statements, as depreciation is added back to net income to arrive at cash flow from operations. Franchisees should consider depreciation expense as part of a broader financial analysis, alongside revenue, other expenses, and cash flow, to gain a comprehensive understanding of All County's financial performance.