What was the purchase amount of certificates of deposit 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 company purchased $130,000 in certificates of deposit in 2023. This information is derived from the cash flow statement, which details investing activities.
For a prospective franchisee, this indicates Counselor Realty's investment strategy and cash management practices. Reviewing these figures over several years, as presented in the FDD, can reveal trends in how the company manages its finances. Certificates of deposit are generally considered low-risk investments, suggesting a conservative approach to managing the company's assets.
Understanding the franchisor's investment activities can provide insight into their financial stability and long-term planning. While a franchisee's primary focus will be on their own outlet's profitability, the financial health of the franchisor is crucial for ongoing support and brand reputation. Therefore, examining these financial statements is a key part of due diligence before investing in a Counselor Realty franchise.