What was the net cash flow from operating activities for Counselor Realty in 2023?
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 net cash flow from operating activities in 2023 was a negative $7,649. This means that Counselor Realty used more cash than it generated from its core business operations during that year.
For a prospective franchisee, this figure provides insight into the financial health and stability of the franchisor. A negative cash flow from operations could indicate challenges in generating revenue, managing expenses, or both. It's important to consider this figure in the context of Counselor Realty's overall financial performance, including its revenues, expenses, and other cash flow activities.
It would be prudent for a potential Counselor Realty franchisee to investigate the reasons behind the negative cash flow in 2023. Understanding whether this was a one-time occurrence due to specific circumstances or a recurring trend is crucial. Further analysis of Counselor Realty's financial statements, along with discussions with the franchisor, can provide a clearer picture of the company's financial management and future prospects.