What amount was due to the parent company from Counselor Realty in 2023?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Sheets December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Cash | $ 70,457 | $ 80,311 |
| Certificates of deposit | 137,791 | 130,280 |
| Accounts receivable, net | - | 1,574 |
| Total assets | $ 208,248 | $ 212,165 |
| Liabilities and Stockholder's Equity | ||
| Liabilities | ||
| Due to franchise | $ 50 | $ - |
| Due to parent company | 5,100 | 5,100 |
| Total liabilities | 5,150 | 5,100 |
| Stockholder's Equity | ||
| Common stock, $.01 par value per share | ||
| 100,000 shares authorized | ||
| 10,000 shares issued and outstanding | 100 | 100 |
| Additional paid-in capital | 47,209 | 47,209 |
| Retained earnings | 155,789 | 159,756 |
| Total stockholder's equity | 203,098 | 207,065 |
| Total liabilities and stockholder' |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the amount due to the parent company, Counselor Holding, Inc., was $5,100 as of December 31, 2023. This figure represents the balance Counselor Realty owed to its parent company at the end of that fiscal year.
This liability likely arises from the allocation of expenses from Counselor Holding, Inc. to Counselor Realty for the usage of system tools and employees. Understanding the nature of these related-party transactions is crucial for a prospective franchisee to assess the financial stability and operational costs associated with the franchise.
It's important to note that while the balance due to the parent company remained consistent at $5,100 between 2023 and 2024, the expenses allocated from the parent company to Counselor Realty were $34,342 in 2023 and $37,278 in 2024. This suggests that while the ongoing allocated expenses can fluctuate year to year, the amount due to the parent company remained the same.