What was the reported value of Caring Transitions' operating right-of-use asset in 2022?
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 |
| Restricted cash | 239,784 | 170,591 | 115,694 |
| Accounts receivable | 706,468 | 532,863 | 389,795 |
| Other receivables | - | - | 6,463 |
| 3,021,253 | 1,653,333 | 1,491,191 | |
| Property and equipment: | |||
| Internal-use software costs | 1,277,414 | 982,694 | 682,334 |
| Computer equipment | 30,428 | 30,428 | 30,428 |
| Leasehold improvements | 40,610 | 40,610 | 40,610 |
| 1,348,452 | 1,053,732 | 753,372 | |
| Accumulated depreciation | (367,508) | (253,387) | (144,122) |
| 980,944 | 800,345 | 609,250 | |
| Other assets: | |||
| Franchise contract asset | 279,182 | 194,035 | 125,690 |
| Operating right-of-use asset | 485, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the value of the operating right-of-use asset in 2022 was $186,675. This asset is related to the company's operating leases and represents the company's right to use an asset for the lease term.
The operating right-of-use asset is listed under the 'Other assets' section of the balance sheet. In 2023, this value decreased significantly to $24,874, before increasing to $485,327 in 2024. These fluctuations could be due to changes in lease agreements, lease terms, or other factors affecting the valuation of the right-of-use asset.
Prospective franchisees should be aware of how Caring Transitions accounts for its leases, as outlined in Item 21 of the FDD. Understanding the nature and valuation of these assets can provide insights into the company's financial obligations and overall financial health. It is important to note that the value of the operating right-of-use asset is subject to change and may impact the company's financial performance.