What was the amount of restricted cash for Caring Transitions in 2023?
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 |
| R |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the amount of restricted cash in 2023 was $170,591. This figure is part of the company's assets and reflects cash that is designated for a specific purpose and not available for general use.
Restricted cash can have implications for a franchisee. It is essential to understand why Caring Transitions holds restricted cash and what those restrictions entail. Common reasons for restricted cash include collateral for leases or lines of credit, funds held in escrow, or amounts set aside for specific future expenses.
For a prospective franchisee, understanding the nature and purpose of restricted cash is crucial for assessing the overall financial health and stability of Caring Transitions. It provides insight into the company's financial management practices and its ability to meet its obligations. Franchisees may want to inquire about the specific restrictions on this cash and how it impacts the company's operations and financial flexibility.