What were the Retained Earnings for Counselor Realty as of December 31, 2021?
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 as of December 31, 2021, were $156,849. Retained earnings represent the accumulated net income of the company that has not been distributed as dividends to stockholders. This figure is a key indicator of the company's financial health and its ability to reinvest in the business or distribute profits in the future.
For a prospective Counselor Realty franchisee, understanding the franchisor's retained earnings can provide insight into the financial stability and profitability of the company. A healthy retained earnings balance suggests that the company has been profitable in the past and has the financial resources to support its franchisees. This can be reassuring for franchisees who are investing in the brand and relying on the franchisor for support and guidance.
It's important to note that while retained earnings are a positive indicator, they should be evaluated in conjunction with other financial metrics, such as revenue, expenses, and cash flow. A comprehensive analysis of the franchisor's financial statements will provide a more complete picture of the company's financial health and its ability to support its franchisees. Reviewing the balance sheets and statements of operations, as well as consulting with a financial advisor, can help potential franchisees make informed decisions.