What were Counselor Realty's retained earnings in 2024?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
Sheets December 31, 2024 and 2023
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Cash | $ 70,457 | $ 80,311 |
| Certificates of deposit | 137,791 | 130,280 |
| Accounts receivable, net | - | 1,574 |
| Total assets | $ 208,248 | $ 212,165 |
| Liabilities and Stockholder's Equity | ||
| Liabilities | ||
| Due to franchise | $ 50 | $ - |
| Due to parent company | 5,100 | 5,100 |
| Total liabilities | 5,150 | 5,100 |
| Stockholder's Equity | ||
| Common stock, $.01 par value per share | ||
| 100,000 shares authorized | ||
| 10,000 shares issued and outstanding | 100 | 100 |
| Additional paid-in capital | 47,209 | 47,209 |
| Retained earnings | 155,789 | 159,756 |
| Total stockholder's equity | 203,098 | 207,065 |
| Total liabilities and stockholder' |
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 as of December 31, 2024, were $155,789. 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.
In comparison, Counselor Realty's retained earnings as of December 31, 2023, were $159,756. The decrease in retained earnings from 2023 to 2024 reflects the fact that Counselor Realty experienced a net loss of $3,967 in 2024. This loss reduced the accumulated profits, resulting in a lower retained earnings balance at the end of the year.
For a prospective franchisee, retained earnings and the trend of profitability are key indicators of the financial stability of Counselor Realty. A consistent history of positive retained earnings suggests that the company is well-managed and financially sound. However, a franchisee should also consider the factors that contributed to the net loss in 2024 and assess whether these factors are likely to persist in the future. Reviewing the complete financial statements and discussing these trends with Counselor Realty's management can provide a more comprehensive understanding of the company's financial position.