What was the retained earnings, beginning for Caring Transitions in 2023?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 924,955 | 543,380 | | | 1,646,345 | 631,072 | 249,497 | | | $ 4,766,706 | 2,672,587 | 2,412,806 |
| 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 related expenses | 541,980 | 559,221 | 527,523 |
| Telephone | 81,013 | 32,391 | 33,697 |
| Training & meetings | 230,038 | 165,798 | 204,102 |
| Website expenses | 146,755 | 163,931 | 2,132 |
| Total expenses | 7,009,611 | 5,905,796 | 5,392,160 |
| Income from operations | 2,729,687 | 2,419,764 | 1,086,847 |
| Other income (expense): | |||
| Interest income | 24,656 | 9,850 | 3,225 |
| Interest expense | (804) | (1,753) | (3,734) |
| Other income | 689 | 150 | 6,463 |
| State & local taxes | (33,955) | (98,937) | (75,278) |
| Total other expense | (9,414) | (90,690) | (69,324) |
| Net income | $ 2,720,273 | 2,329,074 | 1,017,523 |
| Retained earnings, beginning | 924,955 | 543,380 | 618,358 |
| Distributions | (1,70 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the retained earnings beginning in 2023 was $543,380.
Retained earnings represent the accumulated net income of Caring Transitions that has not been distributed to shareholders as dividends. It's a key indicator of the company's financial health and profitability. A higher retained earnings balance generally suggests that the company has been profitable over time and has reinvested its earnings back into the business.
For a prospective Caring Transitions franchisee, this figure provides insight into the financial stability and growth trajectory of the franchisor. It demonstrates the company's ability to generate profits and manage its finances effectively. Monitoring the trend in retained earnings over the years (2022-2024) can further reveal the company's financial performance and sustainability.
It is important to note that retained earnings is just one aspect of a company's financial picture. Prospective franchisees should also consider other financial metrics, such as revenue, expenses, and liabilities, to gain a comprehensive understanding of Caring Transitions' financial condition. Consulting with a financial advisor is recommended to interpret these financial statements in the context of the franchise opportunity.