What is the trend of internal-use software costs for Caring Transitions from 2022 to 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the company's internal-use software costs have increased from 2022 to 2024. In 2022, these costs totaled $682,334. By 2023, they had risen to $982,694, and in 2024, they further increased to $1,277,414. This indicates a consistent upward trend in Caring Transitions's investment in internal software.
For a prospective Caring Transitions franchisee, this trend suggests that the company is actively investing in and developing its internal software systems. This could mean improved efficiency, better support for franchisees, and potentially more advanced tools for managing their businesses. However, it's also important to consider that these costs are capitalized and amortized over 5-15 years, as stated in the FDD, meaning the benefits are realized over a longer period.
It is important to note that these costs reflect Caring Transitions's investment in software for its own internal use, and not necessarily the technology fees that franchisees pay. Franchisees should inquire about how these internal software improvements might translate into tangible benefits for their individual franchise operations. Understanding the specific software tools and support systems available to franchisees is crucial for assessing the value of the franchise opportunity.
Overall, the increasing investment in internal-use software suggests a commitment to technology and innovation within Caring Transitions. Prospective franchisees should investigate further to understand how these investments directly benefit their businesses and contribute to their success.