What was the depreciation expense for Corporate Cleaning Group in 2023?

According to Corporate Cleaning Group's 2025 Franchise Disclosure Document, the depreciation expense for the years ended December 31, 2024, 2023, and 2022 was $5,359, $3,959, and $655, respectively. This means that in 2023, Corporate Cleaning Group recorded $3,959 as an expense to account for the decrease in value of its assets due to wear and tear, obsolescence, or other factors.

Depreciation is a common accounting practice that allows businesses to spread the cost of assets over their useful life. For a potential Corporate Cleaning Group franchisee, understanding depreciation expense can be helpful in assessing the company's financial performance and how it manages its assets. It's important to note that depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash, but it does affect the company's net income.

The depreciation expense can fluctuate from year to year based on the company's investments in depreciable assets and the depreciation methods used. The increase in depreciation expense from $655 in 2022 to $3,959 in 2023 indicates that Corporate Cleaning Group may have acquired more depreciable assets during that period. A prospective franchisee should consider these trends when evaluating the financial health of the franchisor.

Reviewing the depreciation expense alongside other financial statement items can provide a more comprehensive understanding of Corporate Cleaning Group's financial management. For example, comparing depreciation expense to capital expenditures can reveal insights into the company's investment strategies and asset replacement cycles. This information can be valuable for a potential franchisee in making an informed decision about investing in a Corporate Cleaning Group franchise.