What was the beginning cash balance for Counselor Realty in 2024?
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 2024 was $80,311. This figure represents the amount of cash Counselor Realty had on hand at the start of the 2024 fiscal year, which is an important indicator of the company's financial health and liquidity.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy beginning cash balance suggests that Counselor Realty has sufficient funds to cover its initial operating expenses and invest in growth opportunities. It also indicates the company's ability to support its franchisees during the start-up phase and beyond.
However, it's important to consider this figure in conjunction with other financial metrics, such as net income, cash flow, and liabilities, to get a comprehensive view of Counselor Realty's financial stability. A high beginning cash balance does not guarantee future success, as the company's performance throughout the year can significantly impact its overall financial position. Therefore, potential franchisees should conduct thorough due diligence and consult with financial advisors to assess the risks and opportunities associated with investing in a Counselor Realty franchise.
Additionally, the FDD notes that Counselor Realty maintains its cash in financial institutions, and the balance may, at times, exceed federally insured limits. This is a common practice for businesses, but it's worth noting as it implies the company needs to actively manage its cash deposits to ensure they are adequately protected.