What was the amount of Additional Paid-in Capital for Counselor Realty as of December 31, 2024?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| Common Stock | Additional Paid-in | Retained | Total Stockholder's | ||
|---|---|---|---|---|---|
| Shares | Amount | Capital | Earnings | Equity | |
| Balances, December 31, 2021 | 10,000 | $ 100 | $ 47,209 | $ 156,849 | $ 204,158 |
| 2022 net income | - | - | - | 11,780 | 11,780 |
| Balances, December 31, 2022 | 10,000 | 100 | 47,209 | 168,629 | 215,938 |
| 2023 net loss | - | - | - | (8,873) | (8,873) |
| Balances, December 31, 2023 | 10,000 | 100 | 47,209 | 159,756 | 207,065 |
| 2024 net loss | - | - | - | (3,967) | (3,967) |
| Balances, December 31, 2024 | 10,000 | $ 100 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Additional Paid-in Capital as of December 31, 2024, was $47,209. This figure is part of the total stockholder's equity, which amounted to $203,098. The balance sheets also provide comparative data from previous years, showing that the Additional Paid-in Capital remained consistent at $47,209 as of December 31, 2023.
Additional paid-in capital typically represents the amount by which the price investors paid for the company's stock exceeds the stock's par value. In Counselor Realty's case, the common stock has a par value of $.01 per share, with 10,000 shares issued and outstanding, totaling $100. The consistency in additional paid-in capital over the years 2023 and 2024 suggests no new stock issuances occurred during these periods.
For a prospective franchisee, understanding the company's equity structure can provide insights into its financial stability and how it has been funded. The stability of the Additional Paid-in Capital, combined with retained earnings, contributes to the overall financial health of Counselor Realty. Monitoring these figures over time can help franchisees assess the long-term viability of the franchisor. It is also worth noting that retained earnings decreased from $159,756 in 2023 to $155,789 in 2024, reflecting a net loss of $3,967 for the year 2024.
Reviewing the complete financial statements, including the statements of operations and cash flows, will give potential franchisees a more comprehensive view of Counselor Realty's financial performance and stability. Consulting with a financial advisor to interpret these statements in the context of the franchise agreement is advisable.