How much did Caring Transitions spend on leased employee expenses in 2024?
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 |
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company's expenses for leased employees in 2024 totaled $2,784,955. This figure reflects the costs associated with utilizing leased employees, which can include wages, benefits, and associated fees paid to leasing agencies. For a prospective franchisee, understanding this expense is crucial as it provides insight into Caring Transitions' operational costs and resource allocation.
Analyzing the trend of leased employee expenses over the years can offer further context. In 2023, these expenses amounted to $2,196,943, and in 2022, they were $1,987,285. The increase from 2022 to 2024 indicates a growing reliance on leased employees or potentially higher costs associated with leasing arrangements. This trend could be due to various factors, such as increased business activity, strategic decisions to outsource certain functions, or changes in leasing rates.
For a potential Caring Transitions franchisee, it's important to investigate the reasons behind these fluctuations. Understanding the role and function of leased employees within the Caring Transitions business model is essential. A franchisee should inquire about the specific tasks performed by leased employees, the terms of the leasing agreements, and the potential for these costs to impact their own franchise's profitability. Additionally, comparing these expenses to industry benchmarks can help a franchisee assess the efficiency and cost-effectiveness of Caring Transitions' staffing strategies.