What was the increase (decrease) in cash 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 company experienced a decrease in cash of $9,854 in 2024. The beginning cash balance was $80,311, and the ending cash balance was $70,457. This net decrease reflects the overall cash flow activities of Counselor Realty during the year.
Specifically, the statement of cash flows details the various factors contributing to this change in cash position. These include cash flows from operating activities, such as net income (loss) and adjustments for items like interest income and changes in accounts receivable and payables. Additionally, cash flows from investing activities, such as the purchase and redemption of certificates of deposit, also played a role in the overall decrease in cash.
For a prospective franchisee, this information provides insight into the financial management and cash flow trends of Counselor Realty. While a decrease in cash for a single year does not necessarily indicate long-term financial instability, it is a point worth further investigation. A potential franchisee might want to inquire about the reasons for the decrease and the strategies Counselor Realty has in place to manage its cash flow effectively. Understanding these factors can help a franchisee assess the financial health and stability of the franchisor.