What was the total amount of Caring Transitions' liabilities and shareholders' equity in 2024?
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 | 485,327 | 24,874 | 186,675 |
| 764,509 | 218,909 | 312,365 | |
| $ 4,766,706 | 2,672,587 | 2,412,806 | |
| Liabilities and shareholders' equity | |||
| Current liabilities: | |||
| Accounts payable | $ 77,008 | 84,511 | 54,536 |
| Accrued expenses | 312,523 | 350,935 | 354,138 |
| Unearned franchise fees | 509,400 | 155,210 | 354,720 |
| Note payable, current portion | 33,137 | 32,159 | 31,210 |
| Operating lease liability, current portion | 131,414 | 25,280 | 140,466 |
| 1,063,482 | 648,095 | 935,070 | |
| Long-term liabilities: | |||
| Franchise contract liability | 1,685,564 | 1,349,008 | 1,104,110 |
| Note payable, net of current portion | 11,275 | 44,412 | 76,570 |
| Operating lease liability, less current portion | 360,040 | - | 47,559 |
| 2,056,879 | 1,393,420 | 1,228,239 | |
| 3,120,361 | 2,041,515 | 2,163,309 | |
| Shareholders' equity: | |||
| Common shares | 100 | 100 | 100 |
| Treasury shares | (367,528) | (367,528) | (367,528) |
| Additional paid-in capital | 73,545 | 73,545 | 73,545 |
| Retained earnings | 1,940,228 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company's total liabilities and shareholders' equity in 2024 was $4,766,706. This figure represents the sum of what the company owes to others (liabilities) and the investment made by the owners (shareholders' equity). For a prospective franchisee, this number provides a snapshot of the company's overall financial structure and health at a specific point in time.
Specifically, the liabilities consist of both current liabilities (obligations due within a year) and long-term liabilities (obligations extending beyond a year). Current liabilities totaled $1,063,482 and include items such as accounts payable, accrued expenses, unearned franchise fees, and the current portions of notes payable and operating lease liabilities. Long-term liabilities amounted to $2,056,879, primarily composed of franchise contract liabilities, notes payable (net of the current portion), and operating lease liabilities (less the current portion).
Shareholders' equity, representing the owners' stake in the company, totaled $1,646,345. This includes common shares, treasury shares, additional paid-in capital, and retained earnings. Retained earnings, which represent the accumulated profits of the company that have not been distributed to shareholders, make up a significant portion of the shareholders' equity, amounting to $1,940,228. Treasury shares, representing shares repurchased by the company, have a negative value of ($367,528), reducing the overall shareholders' equity. Understanding the composition of liabilities and equity can help a franchisee assess the financial stability and capital structure of Caring Transitions.