table_specific

What were the net cash flows from investing activities for Counselor Realty in 2023?

Counselor_Realty Franchise · 2025 FDD

Answer 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 flows from investing activities in 2023 were $(130,000). This figure reflects the net change in cash resulting from the purchase and redemption of certificates of deposit during that year. Specifically, Counselor Realty purchased certificates of deposit for $(130,000) and had no redemptions.

For a prospective franchisee, understanding the cash flow statement is crucial as it provides insights into how Counselor Realty manages its cash and investments. The investing activities section shows how the company uses its cash for investments like certificates of deposit, which can impact its overall financial health and stability. A significant outflow in investing activities, as seen in 2023, may indicate a strategic decision to allocate funds towards longer-term investments rather than keeping them as readily available cash.

It's important to note that these figures are specific to Counselor Realty's corporate operations and do not directly reflect the financial performance of individual franchise locations. However, the financial stability of the franchisor is a key consideration for potential franchisees, as it can affect the level of support and resources available to them. Therefore, reviewing the franchisor's financial statements, including the cash flow statement, is a vital part of the due diligence process for any prospective franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.