What is the difference between Caring Transitions' restricted cash in 2022 and 2024?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash and restricted cash: | |||
| Cash | $ 2,075,001 | 949,879 | 979,239 |
| Restricted cash | 239,784 | 170,591 | 115,694 |
| Total cash and restricted cash | $ 2,314,785 | 1,120,470 | 1,094,933 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company's restricted cash balance was $115,694 in 2022 and $239,784 in 2024. This represents an increase of $124,090 in restricted cash between the two years.
Restricted cash, unlike regular cash, is designated for a specific purpose and is not freely available for general use by Caring Transitions. The increase in restricted cash could be due to a variety of factors, such as new contractual obligations, increased reserves for specific liabilities, or changes in accounting practices.
For a prospective franchisee, understanding the nature and purpose of this restricted cash is important. It may reflect specific financial commitments or obligations that Caring Transitions has, which could indirectly impact the financial stability or operational decisions of the franchise system. A potential franchisee should inquire with Caring Transitions about the specific reasons for the restricted cash and how it is utilized.