How does the net income (loss) of Counselor Realty compare between 2022 and 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) | $ |
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 fluctuating net income (loss) between 2022 and 2024. In 2022, Counselor Realty had a net income of $11,780. However, in 2023, the company's financial performance declined, resulting in a net loss of $8,873. This downturn continued into 2024, with Counselor Realty reporting a net loss of $3,967.
The shift from a net income in 2022 to net losses in 2023 and 2024 could signal potential challenges in Counselor Realty's business operations. These challenges could stem from various factors, such as increased expenses, decreased revenue, or changes in market conditions. For instance, the monthly franchise fee revenue decreased from $73,235 in 2022 to $57,634 in 2024. Additionally, the number of franchise outlets decreased from seven in 2022 to five in 2024, which may have contributed to the decline in revenue and overall financial performance.
Prospective franchisees should carefully consider these financial trends when evaluating the Counselor Realty franchise opportunity. While a single year's performance may not be indicative of long-term potential, consistent losses over two years could raise concerns about the stability and profitability of the franchise system. It would be prudent for potential franchisees to investigate the reasons behind these losses and assess Counselor Realty's plans to address the financial challenges. Understanding the factors contributing to the net losses and the franchisor's strategies for improvement is crucial for making an informed investment decision.
It is also important to note that the FDD includes financial statements that have been audited by an independent auditor, providing an additional level of assurance regarding the accuracy and reliability of the financial information presented. However, potential franchisees should still conduct their own due diligence and seek professional advice to fully understand the financial risks and opportunities associated with investing in a Counselor Realty franchise.