What does Exhibit A of the Counselor Realty FDD contain?

According to Counselor Realty's 2025 Franchise Disclosure Document, Exhibit A contains the company's financial statements. These statements include balance sheets as of December 31, 2024, and December 31, 2023, along with related statements of operations, stockholder's equity, and cash flows for the years ending December 31, 2024, December 31, 2023, and December 31, 2022.

These financial statements offer prospective Counselor Realty franchisees insight into the franchisor's financial health and performance over the past three years. Reviewing these documents can help potential franchisees assess the company's profitability, stability, and cash flow management. It is important to note that these are the financial statements of the franchisor, not necessarily reflective of the performance of individual franchise locations.

The inclusion of an Independent Auditors' Report indicates that these financial statements have been audited by an independent accounting firm. This report expresses an opinion on the fairness of the presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). This provides a level of assurance regarding the reliability of the financial information presented.

Furthermore, the financial statements include notes that provide additional details and explanations of the accounting policies and practices used in preparing the statements. These notes can be crucial for understanding the underlying assumptions and estimates that affect the reported financial results. For example, the notes discuss related-party transactions, revenue recognition policies, and advertising expenses. A prospective franchisee should carefully review these notes to gain a comprehensive understanding of Counselor Realty's financial position.