How much depreciation did All County record in 2023?
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 company recorded depreciation expenses of $1,399 in 2023. This figure is part of the broader financial statements included in the FDD, which also cover the years 2024 and 2022 for comparison. Depreciation is listed under 'Other Income (Expenses)' in the statement of income.
For a prospective franchisee, understanding depreciation is important as it reflects the wear and tear of assets used by All County in its operations. While this specific figure applies to the franchisor's financial statements, it provides context for how All County accounts for its assets. Franchisees typically also have depreciable assets in their own businesses, such as office equipment and vehicles, so understanding these accounting principles is generally useful.
The FDD provides a snapshot of All County's financial health over three years, offering insight into revenue, expenses, and profitability trends. Reviewing these statements can help potential franchisees assess the financial stability and management practices of the franchisor. Keep in mind that the depreciation expense can vary from year to year based on the company's investments in depreciable assets.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of these financial statements and how they relate to the overall franchise opportunity. Understanding the franchisor's accounting practices can contribute to making a well-informed investment decision.