What was the amount due to the parent company for Counselor Realty in 2022?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash Flows From Operating Activities | ||||
| Net income (loss) | $ (3,967) | $ | (8,873) | $ 11,780 |
| Adjustments to reconcile net income (loss) to net cash | ||||
| flows from operating activities: | ||||
| Interest income earned on certificate of deposit | (977) | (280) | - | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 1,574 | 1,504 | (662) | |
| Due to franchise | 50 | - | - | |
| Due to parent company | - | - | (500) | |
| Net cash flows from operating activitie |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, in 2022, the amount due to the parent company, Counselor Holding, Inc., was $500. This figure is part of the cash flow statement, specifically under 'Cash Flows From Operating Activities' as a change in operating assets and liabilities.
This indicates a decrease in the amount owed to the parent company during that year. It is important to note that Counselor Holding, Inc. allocates expenses to Counselor Realty based on the usage of certain system tools and employees. The total expenses allocated to Counselor Realty were $41,038 for the year ended December 31, 2022.
The 'due to parent company' line in the cash flow statement reflects the net change in the balance owed to the parent. While expenses were allocated to Counselor Realty, the company decreased the amount due to its parent company by $500 in 2022.
Prospective franchisees should be aware of these related-party transactions, as they can impact the financial performance of Counselor Realty. Understanding how these expenses are allocated and managed is crucial for assessing the overall financial health of the franchise.