What is the significance of the location of the balance sheets (Minneapolis, Minnesota) for Counselor Realty?

According to Counselor Realty's 2025 Franchise Disclosure Document, the Independent Auditors' Report, which includes the balance sheets, is issued from Minneapolis, Minnesota. This indicates that the audit of Counselor Realty's financial statements was conducted by auditors located in Minneapolis. This is a standard practice, as companies typically engage local or regional accounting firms to audit their financials.

For a prospective Counselor Realty franchisee, the location of the auditors is less critical than the auditor's opinion itself. The report states that the auditors believe the financial statements present fairly the financial position of Counselor Realty as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023 and 2022, in accordance with accounting principles generally accepted in the United States of America.

The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditors are required to be independent of Counselor Realty and to meet ethical responsibilities. The auditors are responsible for obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes their opinion.

While the location of the auditors in Minneapolis, Minnesota, itself doesn't have direct implications for a franchisee, the overall audit and the auditor's opinion provide a level of assurance regarding the financial health and reporting practices of Counselor Realty. A potential franchisee should focus on understanding the financial statements and the auditor's opinion as part of their due diligence process.