What was the net change in loans to partner-owned entities for Caring Senior Service in 2023?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating Activities | |||
| Net income (loss) | $ 419,016 | $ ( 174,967) | $ ( 464,786) |
| Adjustments to Reconcile Net Loss to Net Cash | |||
| Provided (Used) by Operating Activities: | |||
| Depreciation expense | 5,627 | 9,644 | 9,644 |
| Changes in: | |||
| Accounts receivable | (64,728) | 57,854 | 64,930 |
| Prepaid expenses | 12,560 | 47,249 | ( 23,911) |
| Accounts payable | (8,512) | ( 6,701) | 108,326 |
| Interest payable | 37,212 | - | - |
| Grab the bars fundraiser liability | - | - | ( 109,343) |
| Employee lease liability - related party | (5,461) | 42,588 | 19,804 |
| Accrued state franchise taxes | 5,185 | 7,203 | ( 1,503) |
| Deferred franchise fees | 38,244 | 40,967 | ( 71,868) |
| Net Cash Provided (Used) by Operating Activities | 439,143 | 23,837 | ( 468,707) |
| Investing Activities | |||
| Net changes in notes receivable | (51,846) | 12,000 | ( 10,450) |
| Net changes in loans to partner-owned entities | (116,539) | ( 100,000) | ( 52,000) |
| Net Cash Provided (Used) by Investing Activities | (168,385) | ( 88,000) | ( 62,450) |
| Financing Activities | |||
| Principal payments on long-term debt | (8,135) | ( 8,840) | ( 7,966) |
| Proceeds from related party note | - | 200,000 | - |
| Partner Distributions | - | - | ( 593) |
| Net Cash Provided (used) by Financing Activities | (8,135) | 191,160 | ( 8,559) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 262,623 | 126,997 | ( 539,716) |
| Cash and Cash Equivalents at Beginning of Year | 257,005 | 130,008 | 669,724 |
| Cash and Cash Equivalents at End of Year | $ 519,628 | $ 257,005 | $ 130,008 |
| Supplemental Disclosures of Cash Flow Information: | |||
| Interest paid | $ 25,687 | $ 389 | $ 1,263 |
| State franchise tax paid | $ 23,251 | $ 17,968 | $ 10,738 |
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the net change in loans to partner-owned entities in 2023 was a decrease of $100,000. This figure is derived from the statement of cash flows, specifically under the investing activities section. This indicates that Caring Senior Service provided $100,000 in loans to entities owned by its partners during that year.
For a prospective franchisee, this detail provides insight into Caring Senior Service's financial dealings with its partners. It reveals that the company engages in lending activities with related parties, which could have implications for the overall financial health and stability of the franchise system. While not inherently negative, it's a point to consider when evaluating the financial statements.
It is important for potential franchisees to understand the nature of these related-party transactions. Understanding the terms of these loans, such as interest rates and repayment schedules, is crucial. Furthermore, it would be prudent to assess whether these loans are typical within the franchise industry and how they might affect the franchisor's ability to support its franchisees. A potential franchisee should seek clarification from Caring Senior Service regarding the purpose and impact of these loans on the franchise system's financial stability and growth.