What was the net income (loss) for Counselor Realty in 2022?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Monthly franchise fees | $ 57,634 | $ 63,751 | $ 73,235 |
| Monthly metro advertising fees | 3,480 | 2,880 | 3,600 |
| Other income | 9,432 | 2,748 | 1,447 |
| Total revenues | 70,546 | 69,379 | 78,282 |
| Expenses | 74,513 | 78,252 | 61,402 |
| Income (loss) before income taxes | (3,967) | (8,873) | 16,880 |
| Provision for Income Taxes | - | - | 5,100 |
| Net income (loss) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the company's net income for the year 2022 was $11,780. This figure represents the profit Counselor Realty retained after deducting all expenses, including a provision for income taxes of $5,100, from its total revenues of $78,282. The revenues were derived from monthly franchise fees of $73,235, monthly metro advertising fees of $3,600, and other income of $1,447.
For a prospective franchisee, this net income figure provides insight into the financial performance of Counselor Realty during that specific year. It's important to consider this number in the context of other years' performance and the overall financial health of the company. The FDD shows that Counselor Realty experienced a net loss in both 2023 and 2024, so the 2022 net income may not be representative of a consistent trend.
It is also important to note that Counselor Realty files consolidated tax returns with its parent company, Counselor Holding, Inc., and its subsidiaries. This means that the tax provision of $5,100 recorded for 2022 is part of a larger consolidated tax strategy, and the actual tax implications for Counselor Realty may be influenced by the financial performance of the parent company and other subsidiaries. A prospective franchisee should consider how these related-party transactions and consolidated filings could affect the financial picture of the franchise system.
Furthermore, the FDD indicates that Counselor Holding, Inc., allocates expenses to Counselor Realty based on the usage of certain system tools and employees. The expenses allocated to Counselor Realty were $41,038 for the year ended December 31, 2022. These allocated expenses would impact the net income (loss) of Counselor Realty. A potential franchisee should investigate these allocations to understand how they might affect the franchisor's profitability and, by extension, the support and services provided to franchisees.