What was the amount of equipment 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 51)
What This Means (2025 FDD)
According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, the value of equipment in 2023 was $20,841. This figure represents the recorded value of equipment owned by Corporate Cleaning Group at the end of the 2023 financial year. It's important to note that this is not necessarily the original purchase price but the book value, which takes into account depreciation.
For a prospective franchisee, this indicates the level of investment Corporate Cleaning Group itself has in equipment. However, this figure does not reflect the investment a new franchisee would need to make in equipment to start their own Corporate Cleaning Group franchise. Franchisees should refer to other sections of the FDD, such as Item 7, to understand the estimated initial investment, including equipment costs, for a new franchise location.
It is also important to consider the depreciation policies outlined in the financial statements, as these policies affect the reported value of the equipment. The FDD also mentions the useful life for equipment is between 5 to 7 years. Understanding these accounting practices can provide a clearer picture of the company's financial health and how assets are valued. Franchisees should discuss equipment needs and costs with the franchisor to get a comprehensive understanding of what will be required to operate their own franchise.