What were Counselor Realty's retained earnings 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's retained earnings at the end of 2023 were $159,756. This figure represents the accumulated profits of Counselor Realty that have been retained in the business rather than distributed as dividends to its parent company. Retained earnings are an important indicator of a company's financial health and its ability to fund future growth or weather economic downturns.
For a prospective Counselor Realty franchisee, understanding the franchisor's retained earnings can provide insight into the financial stability of the company. A healthy level of retained earnings suggests that the franchisor has been profitable and has managed its finances effectively. This can be reassuring for franchisees who are investing in the brand and relying on the franchisor for support and guidance.
However, it's also important to consider other factors when evaluating a franchisor's financial health. For example, a high level of retained earnings could also indicate that the company is not investing enough in its business or is not returning enough value to its shareholders. Conversely, a lower level of retained earnings may not necessarily be a cause for concern if the company is investing heavily in growth initiatives or is distributing a significant portion of its profits to shareholders.
Ultimately, prospective franchisees should conduct thorough due diligence and consult with financial advisors to assess the overall financial health of Counselor Realty and determine whether it is a sound investment opportunity. Analyzing trends in retained earnings over several years, as well as comparing Counselor Realty's financial performance to that of its competitors, can provide a more comprehensive understanding of the company's financial strength and stability.