What was the net income (loss) for Caring Senior Service in 2023?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues | ||||
| Royalty fees | $2,112,484 | $ 1,951,540 | $ 1,682,759 | |
| Franchise sales and renewal fees | 182,156 | 195,278 | 206,868 | |
| Technology fee revenue | 1,091,807 | 876,001 | 528,246 | |
| Reimbursed charges from franchises, net | 205,963 | 444,914 | 247,305 | |
| Total Revenue | 3,592,410 | 3,467,733 | 2,665,178 | |
| Operating Expenses | ||||
| General and administrative expenses | 1,173,689 | 1,525,555 | 1,403,766 | |
| Partners' compensation | 62,000 | 65,000 | 66,000 | |
| Technology fee expense | 1,066,368 | 757,400 | 664,191 | |
| Employee lease expense | 852,689 | 1,276,777 | 988,026 | |
| Total Operating Expenses | 3,154,746 | 3,624,732 | 3,121,983 | |
| Net Operating (Loss) Income Before | ||||
| State Franchise Tax Provision | 437,664 | (156,999) | (456,805) | |
| State franchise tax provision | ( 18,648) | (17,968) | (7,981) | |
| Net Income (Loss) | $ 419,016 | $ (174,967) | $ (464,786) |
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 loss for 2023 was $174,967. This figure represents the overall financial performance of Caring Senior Service for that year, taking into account all revenues and expenses. A net loss indicates that the company's expenses exceeded its revenues during that period.
For a prospective franchisee, this information is crucial for assessing the financial health and stability of Caring Senior Service. While a single year's loss doesn't necessarily indicate long-term problems, it's important to consider the context. Reviewing the trend over the three years provided (2022-2024) shows a fluctuating financial performance, with losses in 2022 and 2023, and a profit in 2024. This could be due to various factors, such as changes in operating expenses, investments in technology, or market conditions.
A potential franchisee should investigate the reasons behind the 2023 net loss by asking Caring Senior Service for more detailed explanations. Understanding the factors that contributed to the loss, and the steps the company has taken to address them, is essential for making an informed investment decision. Furthermore, comparing Caring Senior Service's financial performance with other franchises in the senior care industry can provide a broader perspective on its relative strengths and weaknesses.
It is also important to note that the net income (loss) figures do not reflect the potential earnings of an individual franchise unit. A franchisee's profitability will depend on their own operational efficiency, local market conditions, and ability to manage costs. Therefore, prospective franchisees should carefully review the Item 19 financial performance representations in the FDD and conduct their own independent research to estimate their potential earnings.