What was the Caring Transitions' National Branding Fund income in 2023?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 99,978 |
Revenue presented in the accompanying financial statements includes the following as of December 31:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue recognized at a point in time: | $ 2,523,511 | 1,932,821 | 1,267,052 |
| Franchise fee income | |||
| Revenue recognized over time: | |||
| Franchise fee income | 264,823 | 216,291 | 170,043 |
| Royalty income | 4,185,954 | 3,707,206 | 3,165,785 |
| National Branding Fund income | 2,008,018 | 1,760,093 | 1,447,978 |
| Other | 756,992 | 709,149 | 428,149 |
| 7,215,787 | 6,392,739 | 5,211,955 | |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the National Branding Fund income for 2023 was $1,760,093. This fund is supported by contributions from franchisees and is specifically used for advertising and marketing activities to promote the Caring Transitions brand and services at the local, regional, and national levels. These funds are kept separate from Caring Transitions' other finances.
The National Branding Fund (NBF) is administered by Caring Transitions on behalf of its franchisees. The company acts as the principal, meaning that all contributions and expenditures related to the NBF, including depreciation expenses, are reported on a gross basis in the company's financial statements. This provides transparency regarding how the funds are collected and spent.
For a prospective franchisee, understanding the NBF is crucial. It demonstrates the collective investment in brand awareness and marketing efforts. Knowing the income and expenses of the NBF, such as the $1,760,093 income in 2023 and the expenses of $1,452,123, helps franchisees gauge the scale of marketing activities undertaken by Caring Transitions. This can influence a franchisee's expectations regarding brand support and marketing assistance.