What was the total revenue recognized over time for Caring Transitions in 2024?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the total revenue recognized over time in 2024 was $7,215,787. This figure is derived from several sources of income, including franchise fee income of $264,823, royalty income of $4,185,954, National Branding Fund income of $2,008,018, and other income totaling $756,992.
For a prospective franchisee, understanding the breakdown of revenue recognized over time is crucial. It highlights the various ways Caring Transitions generates income, which can directly impact the services and support they provide to franchisees. Royalty income, for example, is a significant portion of this revenue, suggesting an ongoing relationship between the franchisor and its franchisees. The National Branding Fund income indicates collective marketing efforts that benefit the entire franchise system.
The "other" category, contributing $756,992, may include additional services or products offered by Caring Transitions. A potential franchisee should seek clarification from Caring Transitions about what this "other" income encompasses to fully understand the revenue streams and how they might evolve over time. This detailed understanding will help franchisees assess the financial stability and growth potential of the Caring Transitions franchise system.
Overall, the revenue streams show how Caring Transitions generates revenue. A franchisee should investigate these numbers during their due diligence to understand the financial dynamics of the franchise system.