What was the change in accounts receivable for Counselor Realty in 2024?

According to Counselor Realty's 2025 Franchise Disclosure Document, the change in accounts receivable from 2023 to 2024 was an increase of $1,574. This figure is part of the adjustments used to reconcile net income (loss) to net cash flows from operating activities. Accounts receivable primarily consists of franchise-related fees. Counselor Realty charges 8% interest on past due accounts, and these receivables are considered past due if not paid within the established terms.

This increase in accounts receivable suggests that franchisees may have been slower in paying their fees to Counselor Realty in 2024 compared to the previous year. It's important to note that the document also mentions an allowance for credit losses, which was $1,574 as of December 31, 2024, and $3,724 as of December 31, 2023. This allowance accounts for potential uncollectible amounts, indicating that Counselor Realty anticipates some franchisees may not fully pay their outstanding balances.

For a prospective franchisee, this information highlights the importance of understanding the payment terms and potential financial obligations to Counselor Realty. It also underscores the need to factor in potential interest charges on late payments. Furthermore, the franchisor's approach to managing and accounting for accounts receivable provides insight into their financial management practices and risk assessment related to franchisee payments.

It is important to note that the net accounts receivable is listed as zero for 2024 and $1,574 for 2023 on the balance sheet. This is due to the allowance for credit losses being equal to the accounts receivable balance in 2024.