What was the beginning cash balance 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 activities | (3,320) | (7,649) | 10,618 | |
| Cash Flows From Investing Activities | ||||
| Purchase of certificates of deposit | (136,814) | (130,000) | - | |
| Redemption of certificates of deposit | 130,280 | - | - | |
| Net cash flows from investing activities | (6,534) | (130,000) | - | |
| Increase (decrease) in cash | (9,854) | (137,649) | 10,618 | |
| Cash, Beginning | 80,311 | 217,960 | 207,342 | |
| Cash, Ending | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the beginning cash balance for the company in 2022 was $207,342. This figure represents the amount of cash Counselor Realty had on hand at the start of the 2022 fiscal year, which is a key indicator of the company's financial health and liquidity at that time.
For a prospective franchisee, understanding the franchisor's cash flow and cash balance trends is crucial. A healthy beginning cash balance suggests that Counselor Realty had sufficient funds to cover its initial operational expenses and invest in growth opportunities. It also indicates the company's ability to meet its short-term obligations and manage unexpected financial challenges.
However, it's important to consider this figure in conjunction with other financial data provided in the FDD, such as the company's revenues, expenses, and overall profitability. A high beginning cash balance does not necessarily guarantee future financial success, as the company's performance throughout the year can significantly impact its ending cash balance. Therefore, prospective franchisees should conduct a thorough analysis of Counselor Realty's financial statements to assess the company's long-term financial stability and growth potential.