What was the amortization of the right-of-use asset for Caring Transitions in 2024?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating cash flows from operating lease | $ 146,188 | 148,820 | 139,429 |
| Right-of-use assets obtained in exchange | $ 593,717 | - 325,275 | |
| for lease liabilities | |||
| Amortization of the right-of-use asset | $ 121,423 | 161,801 | 138,599 |
| Less change in the lease liability | (115,702) | (162,745) | (137,249) |
| Non-cash portion of lease expense | $ 5,721 | (944) | 1,350 |
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the amortization of the right-of-use asset in 2024 was $121,423. This figure represents the expense recognized during the year for the use of assets that Caring Transitions has the right to use under lease agreements.
For a prospective franchisee, understanding the amortization of right-of-use assets is crucial because it reflects a non-cash expense that impacts the company's financial statements. This amortization, along with other lease-related items, affects the net income and overall financial health of Caring Transitions. Franchisees should be aware of how these accounting practices influence the reported earnings and financial stability of the franchisor.
It's also important to note the other lease-related figures provided in the same table, such as the operating cash flows from operating leases ($146,188 in 2024) and the changes in lease liability ($(115,702) in 2024). These values, in conjunction with the amortization expense, provide a more complete picture of Caring Transitions's leasing activities and their impact on the company's cash flow and financial position. Reviewing these figures can help potential franchisees assess the financial strategies and obligations of the franchisor.