What was the amount of prepaid incremental franchise costs for Expense Reduction Analysts in 2022?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
d scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
CliftonLarsonAllen LLP
Clifton Larson Allen LLP
Milwaukee, Wisconsin April 18, 2024
| 2023 | (restated) 2022 | |||
|---|---|---|---|---|
| ASSETS | - | |||
| CURRENT ASSETS | ||||
| Cash and Cash Equivalents | $ | 1,251,718 | $ | 1,144,589 |
| Accounts Receivable, Net | 444,102 | 186,685 | ||
| Prepaid Expenses | 85,996 | 65,844 | ||
| Prepaid Incremental Franchise Costs | 393,234 | 309,426 | ||
| Prepaid Taxes | 235,161 | 10000 | ||
| Due from Related Parties | 1,005,148 | 857,412 | ||
| Total Current Assets | 3,415,359 | 2,563,956 | ||
| PROPERTY AND EQUIPMENT, Net | 18,770 | 15,541 | ||
| INTERNAL-USE SOFTWARE, Net | 129,805 | 101,234 | ||
| OTHER ASSETS | ||||
| Prepaid Incremental Franchise Costs, Noncurrent Portion | 2,464,230 | 1,977,024 | ||
| Operating Right-of-Use Asset, Net |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the prepaid incremental franchise costs for 2022 were $309,426. This figure represents the current asset portion of these costs.
In accounting terms, prepaid incremental franchise costs are expenses the company has paid in advance that will benefit future periods. For a prospective Expense Reduction Analysts franchisee, this indicates the level of investment the company makes in its franchisees up front, such as training and support, that are amortized over time.
Additionally, the FDD lists a noncurrent portion of prepaid incremental franchise costs as $1,977,024 for 2022. This amount represents the long-term value Expense Reduction Analysts places on its franchise agreements and related support activities. Reviewing these figures over several years can reveal trends in Expense Reduction Analysts's investment in its franchise system.