What amount was due to the parent company from Counselor Realty in 2024?
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., from Counselor Realty was $5,100 as of December 31, 2024. The FDD also shows that the amount due to the parent company was also $5,100 as of December 31, 2023.
This "due to parent company" figure represents a liability on Counselor Realty's balance sheet, indicating an amount owed to its parent company for allocated expenses. These expenses are allocated based on the usage of certain system tools and employees. For a prospective franchisee, this highlights the financial relationship between Counselor Realty and its parent company and how expenses are distributed.
It's important to note that while the balance sheet shows the amount due at a specific point in time (year-end), the notes to the financial statements reveal the total expenses allocated to Counselor Realty from Counselor Holding, Inc. throughout the year. These allocated expenses totaled $37,278 for the year ended December 31, 2024. This suggests that while expenses are allocated throughout the year, the $5,100 represents the remaining balance due at year's end.
Understanding these related-party transactions is crucial for a potential franchisee to assess the overall financial health and stability of Counselor Realty. It provides insight into how the company manages its finances and its relationship with its parent entity.