What was the accumulated depreciation for Corporate Cleaning Group in 2023?
Corporate_Cleaning_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ordingly, we do not express an opinion or provide any assurance on it.
Doyle & Associates, PLLC Farmington Hills, Michigan
March 27, 2025
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| CURRENT ASSETS | |||
| Cash in bank | $ 53,094 | $ 186,944 | $ 151,684 |
| Accounts receivable, trade, less allowance for doubtful | |||
| accounts of $650, $650 and $650, respectively | 193,406 | 178,150 | 89,417 |
| Prepaid expenses | 6,626 | 9,190 | 25,437 |
| Note receivable - related party | - · · · · · · · · · · · | 17,000 | |
| Deferred commissions | 69,917 | 51,584 | 29,364 |
| Total Current Assets | 323,043 | 442,868 | 295,902 |
| PROPERTY AND EQUIPMENT | |||
| Building improvements | 37,149 | 27,089 | 14,925 |
| Equipment | 23,528 | 20,841 | 20,841 |
| Furniture and fixtures | 13,561 | 13,561 | 4,595 |
| Total Property and Equipment | 74,238 | 61,491 | 40,361 |
| Less: Accumulated depreciation | 22,204 | 16,845 | 12,886 |
| Net Property and Equipment | 52,034 | 44,646 | 27,475 |
| OTHER ASSETS | |||
| Operating lease right-of-use assets | 14,850 | 29,245 | - |
| Deferred commissions | 516,418 | 416,238 | 255,489 |
| Total Other Assets | 531,268 | 445,483 | 255,489 |
| TOTAL ASSETS | $ 906,345 | $ 932,997 | $ 578,866 |
|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2025 FDD)
According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, the accumulated depreciation for the company in 2023 was $16,845. This figure reflects the total depreciation of the company's assets, such as building improvements, equipment, and furniture and fixtures, up to that point in time. Accumulated depreciation is a contra-asset account that reduces the net book value of these assets on the balance sheet.
For a prospective franchisee, understanding accumulated depreciation is important for assessing the financial health and asset management practices of Corporate Cleaning Group. While franchisees are not directly impacted by this number, it provides insight into how the franchisor manages its own assets, which can be indicative of their overall business acumen. A growing accumulated depreciation balance suggests that the company's assets are aging, which may necessitate future capital expenditures to replace or upgrade them.
It's also worth noting that depreciation expense for 2023 was $3,959. This expense represents the amount of depreciation recognized during that specific year. The accumulated depreciation of $16,845 is the sum of all prior years' depreciation expenses, including the $3,959 from 2023. Reviewing these figures over several years can reveal trends in Corporate Cleaning Group's capital investments and asset utilization strategies.
Franchisees might consider asking Corporate Cleaning Group about their long-term capital expenditure plans and how they ensure their assets remain productive and up-to-date. While the franchisee is not directly responsible for these assets, the franchisor's financial stability and resource management can indirectly affect the support and services they provide to their franchisees.