What was the net operating right-of-use asset for Expense Reduction Analysts in 2024?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
g 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 9, 2025
| 2024 | 2023 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and Cash Equivalents | $ | 2,213,765 | $ | 1,251,718 |
| Accounts Receivable, Net | , | 371,963 | 444,102 | |
| Prepaid Expenses | 82,365 | 85,996 | ||
| Prepaid Incremental Franchise Costs | 475,881 | 393,234 | ||
| Prepaid Taxes | 192,835 | 235,161 | ||
| Due from Related Parties | 1,031,474 | 1,005,148 | ||
| Total Current Assets | 4,368,283 | 3,415,359 | ||
| PROPERTY AND EQUIPMENT, Net | 30,278 | 18,770 | ||
| INTERNAL-USE SOFTWARE, Net | 157,857 | 129,805 | ||
| OTHER ACCETS | ||||
| OTHER ASSETS Prepaid Incremental Franchise Costs, Noncurrent Portion | 3,034,623 | 2,464,230 | ||
| Operating Right-of-Use Asset, Net | 164,045 | 2,404,230 | ||
| Deposits |
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 2024 was $164,045. This figure represents the value of Expense Reduction Analysts' right to use leased assets, such as office space or equipment, after accounting for accumulated depreciation and amortization.
The right-of-use (ROU) asset reflects Expense Reduction Analysts' rights to use an asset for the lease term. These assets and related lease liabilities are recognized at the beginning of the lease based on the present value of lease payments. This accounting treatment provides a clearer picture of Expense Reduction Analysts' financial obligations and asset utilization related to leasing activities.
For a prospective Expense Reduction Analysts franchisee, understanding the company's ROU assets can offer insights into its operational footprint and leasing strategies. While franchisees typically do not lease property directly from the franchisor, this information still reflects the financial practices of Expense Reduction Analysts. Reviewing these figures over time can reveal trends in Expense Reduction Analysts' leasing activities and provide a more comprehensive view of its financial health.