Is there a difference in the allowance for credit losses between 2023 and 2024 for Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
t rates and interest rates, amongst others.
Accounts receivable consists of franchise related fees. Accounts receivable are unsecured and the Company charges 8% interest on past due accounts. Accounts receivable are considered past due if not paid within the terms established. Accounts receivable are written off when they are determined to be uncollectible. The allowance for credit losses was $1,574 and $3,724 as
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the allowance for credit losses was different between 2023 and 2024. As of December 31, 2024, the allowance for credit losses was $1,574. As of December 31, 2023, the allowance for credit losses was $3,724. This indicates a decrease in the allowance for credit losses from 2023 to 2024.
Counselor Realty's accounts receivable consist of franchise-related fees. These receivables are unsecured, and the company charges 8% interest on past-due accounts. Accounts receivable are considered past due if they are not paid within the established terms. When accounts receivable are determined to be uncollectible, they are written off.
The allowance for credit losses is an estimate of the amount of accounts receivable that Counselor Realty does not expect to collect. This estimate is based on historical loss experience, current conditions, and expectations about future events. The decrease in the allowance for credit losses from 2023 to 2024 may indicate that Counselor Realty expects to collect a higher percentage of its accounts receivable in 2024 than it did in 2023.