What was the net operating right-of-use asset for Expense Reduction Analysts in 2023?
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' 2025 Franchise Disclosure Document, the net operating right-of-use asset for the company in 2023 was $218,529. This figure represents the value of Expense Reduction Analysts' right to use assets like property or equipment under operating leases, after accounting for accumulated depreciation or amortization.
For a prospective franchisee, the operating right-of-use asset reflects Expense Reduction Analysts' financial obligations and asset utilization related to leased properties or equipment. It is important to note that operating leases are included as right-of-use assets and lease liabilities on the consolidated balance sheets.
Understanding the value of these assets can provide insight into the company's operational structure and long-term financial commitments. Reviewing the notes related to the financial statements, particularly those concerning leases, will give potential franchisees a better understanding of Expense Reduction Analysts' leasing strategies and the impact of these assets on the company's overall financial health.