What was the Caring Transitions depreciation expense in 2022?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
signing this agreement as of the dates below.
DURABLE IRREVOCABLE POWER OF ATTORNEY [Individual Franchisee]
THIS POWER OF ATTORNEY is executed by each of the undersigned individual(s) (the "Principals") in favor of C.T. FRANCHISING SYSTEMS, INC., an Ohio corporation ("Franchisor").
PREAMBLE:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue: | |||
| Revenue from franchise agreements | $ 7,731,280 | 6,565,467 | 5,031,029 |
| National Branding Fund revenue | 2,008,018 | 1,760,093 | 1,447,978 |
| 9,739,298 | 8,325,560 | 6,479,007 | |
| Expenses: | |||
| Advertising & marketing | 726,488 | 663,540 | 535,926 |
| Bank & payroll fees | 5,756 | 10,164 | 6,248 |
| Computer expenses | 197,874 | 156,949 | 282,073 |
| Depreciation | 48,334 | 56,596 | 46,554 |
| Dues & subscriptions | 692 | 1,627 | 1,178 |
| Employee-related expenses | 17,703 | 17,688 | 10,653 |
| Insurance | 24,161 | 14,569 | 10,052 |
| Leased employees expenses | 2,784,955 | 2,196,943 | 1,987,285 |
| Licenses | 4,418 | 4,723 | 2,122 |
| National Branding Fund expenses | 1,738,015 | 1,452,123 | 1,316,876 |
| Office & supplies | 15,916 | 14,690 | 13,923 |
| Postage | 4,327 | 4,583 | 4,990 |
| Professional fees | 321,350 | 275,662 | 297,712 |
| Rent | 118,615 | 113,918 | 108,924 |
| Repairs & maintenance | 1,221 | 680 | 190 |
| Sales r |
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the depreciation expense for the year 2022 was $46,554. This figure represents the accounting expense recognized for the reduction in value of Caring Transitions' assets due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash, but it is an important factor in determining the company's net income.
In addition to the depreciation expense listed under the general expenses, the FDD also lists depreciation as an adjustment to reconcile net income to net cash. The depreciation in this section for 2022 is listed as $78,898. This is added back to net income to arrive at net cash provided by operating activities because it is a non-cash expense that reduced net income but did not reduce cash.
Prospective franchisees should understand how depreciation is calculated and how it impacts the financial statements of Caring Transitions. Reviewing these figures over multiple years, as presented in the FDD, can provide insights into the company's capital investments and asset management strategies. It's also important to note that these figures reflect the depreciation expense for the franchisor's corporate operations and may not directly correlate to the depreciation expenses a franchisee might incur, as those will depend on the franchisee's specific assets and accounting practices.