What was the net loss for Counselor Realty in 2023?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| Common Stock | Additional Paid-in | Retained | Total Stockholder's | ||
|---|---|---|---|---|---|
| Shares | Amount | Capital | Earnings | Equity | |
| Balances, December 31, 2021 | 10,000 | $ 100 | $ 47,209 | $ 156,849 | $ 204,158 |
| 2022 net income | - | - | - | 11,780 | 11,780 |
| Balances, December 31, 2022 | 10,000 | 100 | 47,209 | 168,629 | 215,938 |
| 2023 net loss | - | - | - | (8,873) | (8,873) |
| Balances, December 31, 2023 | 10,000 | 100 | 47,209 | 159,756 | 207,065 |
| 2024 net loss | - | - | - | (3,967) | (3,967) |
| Balances, December 31, 2024 | 10,000 | $ 100 |
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 net loss of $8,873 in 2023. This figure is derived from the statement of operations included in the financial statements. The document also includes balance sheets as of December 31, 2024 and 2023, along with statements of operations, stockholder's equity, and cash flows for the years ending December 31, 2024, 2023, and 2022.
For a prospective franchisee, understanding Counselor Realty's financial performance is crucial. A net loss indicates that the company's expenses exceeded its revenues during that period. While a single year's loss doesn't necessarily indicate long-term instability, it's important to consider the trend over multiple years. In this case, Counselor Realty also had a net loss in 2024, but a net income in 2022.
It would be prudent for potential franchisees to investigate the reasons behind the net losses in 2023 and 2024. Understanding the factors that contributed to these losses, such as increased expenses or decreased revenues, can provide valuable insight into the financial health and stability of Counselor Realty. This information can help franchisees assess the risks and potential rewards associated with investing in the franchise.
Furthermore, the FDD indicates that there were no new franchises sold in 2024, 2023, or 2022, and that one franchise agreement expired in March 2023 and was not renewed. These factors may have contributed to the Counselor Realty's financial performance during those years. A potential franchisee should consider how these factors may impact their investment.