What were the Retained Earnings for Counselor Realty as of December 31, 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 as of December 31, 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, Counselor Holding, Inc. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in future growth.
For a prospective Counselor Realty franchisee, understanding the retained earnings can provide insight into the financial stability and profitability of the franchisor. A healthy retained earnings balance suggests that the company has been successful in generating profits and managing its finances effectively. This can be reassuring for franchisees who are considering investing in the brand.
It's also important to note that Counselor Realty experienced a net loss of $8,873 in 2023, which reduced the retained earnings. Despite this loss, the company still maintained a substantial balance of retained earnings. Monitoring the trend in retained earnings over several years, as presented in the Statements of Stockholder's Equity, can offer a more comprehensive view of the company's financial performance and sustainability.