What was the total revenue recognized at a point in time for Caring Transitions in 2022?
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 |
|---|
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 at a point in time in 2022 was $1,267,052. This revenue is distinct from revenue recognized over a period of time, such as royalties.
For a prospective franchisee, understanding the breakdown of revenue recognition is crucial. Revenue recognized at a point in time typically refers to the initial franchise fee income that Caring Transitions recognizes upfront when a new franchise agreement is established. This contrasts with revenue recognized over time, which includes royalties and other ongoing fees collected throughout the franchise term.
The fact that Caring Transitions recognized over $1.2 million at a point in time in 2022 indicates a certain level of new franchise sales activity during that year. Reviewing these figures over several years, as presented in the FDD, can help potential franchisees identify trends in the company's growth and stability. It's also important to note that these figures reflect Caring Transitions's revenue, not the revenue of individual franchisees.