What is the purpose of Counselor Realty evaluating subsequent events through April 21, 2025?

According to Counselor Realty's 2025 Franchise Disclosure Document, the company evaluated subsequent events through April 21, 2025. The purpose of this evaluation is to identify any events that would require either recording or disclosure in Counselor Realty's financial statements. This process ensures that the financial statements accurately reflect the company's financial position up to the date they are issued.

In accounting, 'subsequent events' refer to events that occur after the balance sheet date (December 31, 2024, in this case) but before the financial statements are issued. These events can be either 'recognized' events, which provide additional evidence about conditions that existed at the balance sheet date and require adjustments to the financial statements, or 'non-recognized' events, which involve conditions that did not exist at the balance sheet date but are so significant that they require disclosure.

For a prospective Counselor Realty franchisee, this evaluation provides assurance that the financial statements have been thoroughly reviewed for any significant events that could impact the company's financial health. This is a standard auditing procedure that helps ensure the reliability and transparency of the financial information presented in the FDD. By evaluating these events, Counselor Realty aims to provide a more complete and accurate picture of its financial standing to potential franchisees.