What were the total expenses for Counselor Realty in 2023?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Monthly franchise fees | $ 57,634 | $ 63,751 | $ 73,235 |
| Monthly metro advertising fees | 3,480 | 2,880 | 3,600 |
| Other income | 9,432 | 2,748 | 1,447 |
| Total revenues | 70,546 | 69,379 | 78,282 |
| Expenses | 74,513 | 78,252 | 61,402 |
| Income (loss) before income taxes | (3,967) | (8,873) | 16,880 |
| Provision for Income Taxes | - | - | 5,100 |
| Net income (loss) |
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 total expenses for the year 2023 were $78,252. This figure is part of the financial statements included in the FDD, which provide a summary of the company's financial performance over the past three years. These expenses contribute to Counselor Realty's overall financial health, impacting its profitability and ability to support its franchisees.
For a prospective franchisee, understanding the franchisor's expenses is crucial. It offers insight into how Counselor Realty manages its finances and where its money is being allocated. High expenses might indicate potential financial instability or areas where the franchisor is heavily investing, such as marketing or technology. Conversely, low expenses could suggest a lean operation, but it could also raise concerns about underinvestment in key areas.
It's important to note that these expenses are specific to Counselor Realty Franchising, Inc. and do not reflect the operating expenses of individual franchise locations. A potential franchisee should carefully review the entire financial section of the FDD, including the notes to the financial statements, to gain a comprehensive understanding of the franchisor's financial condition. Additionally, they should consider consulting with a financial advisor to interpret these figures in the context of their own investment goals and risk tolerance.
Furthermore, the FDD also reveals that Counselor Holding, Inc. allocates expenses to Counselor Realty Franchising, Inc. The total expenses allocated to the Company were $37,278, $34,342 and $41,038 for the years ended December 31, 2024, 2023 and 2022, respectively. This is important for a franchisee to understand because it shows that the parent company is allocating expenses to the franchise, which could impact the franchisee's profitability.