What was the amount of internal-use software costs for Caring Transitions in 2024?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
that we identified during the audit.
Clark, Schaefer, Hackett & Co.
Cincinnati, Ohio March 24, 2025
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ 2,075,001 | 949,879 | 979,239 |
| Restricted cash | 239,784 | 170,591 | 115,694 |
| Accounts receivable | 706,468 | 532,863 | 389,795 |
| Other receivables | - | - | 6,463 |
| 3,021,253 | 1,653,333 | 1,491,191 | |
| Property and equipment: | |||
| Internal-use software costs | 1,277,414 | 982,694 | 682,334 |
| Computer equipment | 30,428 | 30,428 | 30,428 |
| Leasehold improvements | 40,610 | 40,610 | 40,610 |
| 1,348,452 | 1,053,732 | 753,372 | |
| Accumulated depreciation | (367,508) | (253,387) | (144,122) |
| 980,944 | 800,345 | 609,250 | |
| Other assets: | |||
| Franchise contract asset | 279,182 | 194,035 | 125,690 |
| Operating right-of-use asset | 485, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company's internal-use software costs for 2024 were $1,277,414. This figure represents the capitalized costs associated with developing software for internal use and the company's websites. These costs are then amortized over the estimated useful lives of the assets, which range from 5 to 15 years.
For a prospective franchisee, this indicates that Caring Transitions invests significantly in its internal software and online presence. This investment could translate to more efficient operations and better support for franchisees through technology. The capitalization and amortization of these costs suggest a long-term approach to software development and maintenance.
It's important to note that this figure represents the total capitalized costs for internal-use software and website development, not necessarily the annual expense. The actual expense recognized in any given year would depend on the amortization schedule. A potential franchisee might want to inquire about the specific types of software and website development included in this figure to understand the scope of Caring Transitions' technological investments.