What was the total current liabilities for Caring Senior Service in 2023?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ts December 31, 2024, 2023, and 2022**
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | $ 519,628 | $ 257,005 | $ 130,008 |
| Acounts receivable: | |||
| Trade | 82,374 | 23,729 | 44,144 |
| Related party | 6,513 | 430 | 37,869 |
| Prepaid expenses | 3,924 | 16,484 | 63,733 |
| Total Current Assets | 612,439 | 297,648 | 275,754 |
| Property and equipment, net of depreciation | - | 5,627 | 15,271 |
| Notes receivable | 51,846 | - | 12,000 |
| TOTAL ASSETS | $ 664,285 | $ 303,275 | $ 303,025 |
| LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||
| Current Liabilities | |||
| Accounts payable: | |||
| Trade | $ 220,999 | $ 229,137 | $ 238,542 |
| Related party | 2,858 | 3,232 | 528 |
| Accrued state franchise taxes | 23,126 | 17,941 | 10,738 |
| Advances from related party | 95,535 | 97,126 | 54,538 |
| Current portion of interest payable | 30,900 | - | - |
| Current portion of long-term debt | 6,750 | 16,921 | 10,037 |
| Current portion of note payable from related party | 6,845 | 3,869 | - |
| Deferred franchise fees | 133,181 | 94,937 | 53,970 |
| Total Current Liabilities | 520,194 | 463,163 | 368,353 |
| Non-Current Liabilities | |||
| Interest payable | 6,312 | - | - |
| Long-term debt, net of current portion | 499,258 | 497,222 | 512,946 |
| Note payable from related party | 189,285 | 196,131 | - |
| Total Non-Current Liabilities | 694,855 | 693,353 | 512,946 |
| TOTAL LIABILITIES | 1,215,049 | 1,156,516 | 881,299 |
| Partners' Capital | |||
| Partners' Capital (Deficit) - restated | 32,875 | (386,141) | (211,174) |
| Less: receivables from partner-owned entities | (583,639) | (467,100) | (367,100) |
| Total Partners' Capital (Deficit) | (550,764) | (853,241) | (578,274) |
| TOTAL LIABILITIES AND | $ 664,285 | $ 303,275 | $ 303,025 |
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the total current liabilities for the company in 2023 were $463,163. This figure represents the sum of various short-term financial obligations that Caring Senior Service was expected to settle within a year. These liabilities include accounts payable to trade partners and related parties, accrued state franchise taxes, advances from related parties, the current portion of interest payable, the current portion of long-term debt, the current portion of a note payable from a related party, and deferred franchise fees.
Understanding the composition of these current liabilities is crucial for prospective franchisees. For instance, a significant portion of the current liabilities consists of accounts payable, indicating the company's obligations to its suppliers and vendors. Advances from related parties also constitute a notable part, reflecting financial transactions with entities connected to Caring Senior Service. Deferred franchise fees represent payments received for franchise rights that have not yet been earned, which is a common practice in franchising.
For a potential franchisee, this information offers insight into the financial management and short-term financial health of Caring Senior Service. A high level of current liabilities relative to current assets could indicate potential liquidity issues, whereas a manageable level suggests the company is effectively managing its short-term obligations. Therefore, reviewing these figures in conjunction with the company's assets and overall financial performance is essential for assessing the financial stability of Caring Senior Service.
It is also important to note the specific types of liabilities, such as those related to franchise taxes and related-party transactions, as these can have implications for the franchisee's own financial planning and relationship with the franchisor. Consulting with a financial advisor to interpret these figures in the context of the broader financial statements is advisable for any prospective franchisee.