What was the net property and equipment amount 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 property and equipment for the company in 2023 was $18,770. This figure represents the value of Expense Reduction Analysts' physical assets, such as computers, equipment, furniture, and leasehold improvements, after accounting for accumulated depreciation. Depreciation is the reduction in the value of an asset over time due to wear and tear or obsolescence.
For a prospective franchisee, this number provides insight into the capital investment Expense Reduction Analysts itself has made in its own infrastructure. It is important to note that this figure reflects the financial position of the franchisor, Expense Reduction Analysts, Inc., and not the investment required by a new franchisee to start their own Expense Reduction Analysts franchise. Franchisees should consider this in the context of the overall financial health and stability of the franchisor.
It's also worth noting that the FDD includes a breakdown of the total property and equipment before depreciation, which was $33,748 in 2023. This indicates that a portion of the assets had already been depreciated. Reviewing these figures can help a potential franchisee understand how Expense Reduction Analysts manages its assets and accounts for depreciation, which is a standard accounting practice.
In summary, the net property and equipment amount offers a glimpse into the Expense Reduction Analysts' asset management and financial reporting practices. While not directly indicative of a franchisee's investment, it contributes to the overall picture of the franchisor's financial standing.