What were the Retained Earnings for Counselor Realty as of December 31, 2022?
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 Retained Earnings as of December 31, 2022, were $168,629. 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, Counselor Holding, Inc. Retained earnings are a key component of the company's overall equity.
This number is important for prospective franchisees because it provides insight into the financial stability and profitability of Counselor Realty. A healthy retained earnings balance suggests that the company has been profitable in the past and has been able to reinvest earnings back into the business. This can be an indicator of a well-managed franchise system.
It's also worth noting the changes in retained earnings over the years presented. The table shows that Counselor Realty experienced a net income in 2022, which increased the retained earnings. However, there were net losses in 2023 and 2024, which decreased the retained earnings. Monitoring these trends can give a franchisee a sense of the company's recent financial performance and potential future trajectory.