What were the total other assets 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 company's total other assets in 2023 amounted to $8,357,318. This figure is a key indicator of the financial health and stability of Expense Reduction Analysts, representing the cumulative value of assets not classified as current assets, property, equipment, or internal-use software. These assets include items such as prepaid franchise costs, operating right-of-use assets, deposits, deferred tax assets, and intangible assets.
For a prospective franchisee, understanding the composition and value of these other assets is crucial. A significant portion of these assets consists of prepaid incremental franchise costs, both current and noncurrent, which reflect Expense Reduction Analysts' investments in securing and supporting its franchise network. Intangible assets, another major component, typically represent items like goodwill, brand recognition, and intellectual property, which are vital for maintaining a competitive edge in the cost reduction consulting market.
The substantial value of other assets suggests that Expense Reduction Analysts has made significant long-term investments in its brand, technology, and franchise system. However, franchisees should also investigate the nature and liquidity of these assets to ensure they contribute to the overall financial strength of the company. For instance, deferred tax assets rely on future profitability to be realized, and intangible assets are subject to impairment if their value diminishes over time.
In comparison to other franchise systems, the composition of 'other assets' can vary widely. Some franchises may have a higher proportion of tangible assets, while others may rely more heavily on intangible assets like brand recognition. Therefore, prospective Expense Reduction Analysts franchisees should carefully evaluate the company's balance sheet and seek professional financial advice to fully understand the implications of these assets for the long-term viability of the franchise system.