Does the Counselor Realty Franchise Disclosure Document include statements of operations?

According to Counselor Realty's 2025 Franchise Disclosure Document, the financial statements, including the statements of operations, are included in Exhibit A. Specifically, Item 21 states that Counselor Realty's balance sheets as of December 31, 2024, and December 31, 2023, and the related statements of operations, stockholder's equity, and cash flows for the periods ended December 31, 2024, December 31, 2023, and December 31, 2022, are included in the Franchise Disclosure Document at Exhibit A.

The inclusion of these financial statements provides prospective franchisees with an overview of Counselor Realty's financial performance over the past three years. This allows potential franchisees to assess the financial stability and profitability of the company before making a decision to invest in a franchise.

The statements of operations show the revenues, expenses, and net income (or loss) for the franchisor over the past three years. For example, the monthly franchise fees were $57,634 in 2024, $63,751 in 2023, and $73,235 in 2022. Total revenues were $70,546 in 2024, $69,379 in 2023, and $78,282 in 2022. Net income (loss) was $(3,967) in 2024, $(8,873) in 2023, and $11,780 in 2022. Analyzing these trends can help a franchisee understand the franchisor's revenue streams and expense management.

Statements of cash flow are also included, showing how Counselor Realty generated and used cash over the same period. For example, net cash flows from operating activities were $(3,320) in 2024, $(7,649) in 2023, and $10,618 in 2022. These statements, along with the balance sheets and statements of stockholder's equity, offer a comprehensive view of the franchisor's financial health, which is crucial for any potential franchisee's due diligence.