Does the Counselor Realty FDD include notes to the financial statements?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
70,457 | $ | 80,311 | $ 217,960 |
Notes to Financial Statements December 31, 2024, 2023 and 2022
1. Summary of Significant Accounting Policies
Nature of Operations
Counselor Realty Franchising, Inc. (the Company) was incorporated in Minnesota on May 8, 2001. The Company was formed to offer franchises for a full service residential and/or commercial real estate brokerage service business. The Company commenced the offering and sale of franchises in 2002. The Company is a wholly-owned subsidiary of Counselor Holding, Inc.
The franchise agreement includes the following:
- The Company agrees to grant franchisees the use of its Systems and Marks to operate a real estate brokerage business.
- The franchisee agrees to pay an initial fee, monthly franchise fees and metro advertising fees when applicable.
- The Company agrees to provide an initial training program and may offer additional training programs from time to time.
There were no new franchises sold in 2024, 2023, or 2022. There were no franchise renewals in 2024, 2023 or 2022. No franchise renewal fees are required. There were five franchised outlets as of December 31, 2024 and 2023. There were seven franchise outlets as of December 31, 2022. One franchise agreement expired in March 2023 and was not renewed. One franchise agreement expired in December 2022 and was not renewed. Initial franchise fees are typically $7,500 to $15,000 per franchise, as determined by the population of the franchise territory. The franchisee agrees to pay a base monthly fee covering up to five licensed agents and additional monthly fees per licensed agent above five operating from or through their office. The monthly franchise fee revenue was $57,634, $63,751 and $73,235 for the years ended December 31, 2024, 2023 and 2022, respectively. If the franchisee is located within the 11-county metropolitan area of the Twin Cities, there is a monthly metro advertising fee per licensed agent. The agreement term is five years beginning on the date the office opens.
Cash
The Company maintains its cash in financial institutions. The balance, at times, may exceed federally in
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
Yes, the 2025 Counselor Realty FDD includes notes to the financial statements. These notes are an integral part of the financial statements and provide additional details and explanations of the figures presented in the balance sheets, statements of operations, stockholder's equity, and cash flows.
The notes cover various aspects of Counselor Realty's accounting practices and financial condition. For example, the notes include a summary of significant accounting policies, such as the nature of operations, how the company recognizes revenue from contracts, and its policies regarding cash, certificates of deposit, and accounts receivable. The notes also disclose related-party transactions, such as expenses allocated to the company by its parent, Counselor Holding, Inc., which amounted to $37,278 in 2024, $34,342 in 2023, and $41,038 in 2022.
Furthermore, the notes address how Counselor Realty handles estimates in preparing its financial statements, advertising costs, and income taxes. They also discuss subsequent events, with the company evaluating events through April 21, 2025, to identify items requiring recording or disclosure. The table of contents for the financial statements also explicitly lists "Notes to Financial Statements" on page 7, confirming their inclusion.
Prospective franchisees should carefully review these notes to gain a deeper understanding of Counselor Realty's financial reporting and to assess the company's financial health and stability. Understanding these accounting policies and financial details is crucial for making an informed investment decision.