What was the total value of other assets held by 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' 2025 Franchise Disclosure Document, the total value of other assets held by the company in 2022 was $7,837,724. This figure is part of the consolidated balance sheet, reflecting the financial position of Expense Reduction Analysts and its subsidiaries. These assets include items such as prepaid incremental franchise costs (noncurrent portion), 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 intangible assets and prepaid franchise costs, which may reflect the long-term investments Expense Reduction Analysts has made in its brand, technology, and franchise network. The presence of a deferred tax asset suggests that the company may have future tax benefits arising from past losses or deductible temporary differences.
The 'operating right-of-use asset' likely relates to leased properties or equipment used in the business. The fluctuations in these asset values from year to year could indicate changes in the company's investment strategies, lease obligations, or tax planning. Reviewing these figures in the context of the company's overall financial health can provide insights into its stability and growth potential.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of these assets and how they contribute to the overall financial health and stability of Expense Reduction Analysts. Further due diligence into the nature and valuation of these assets can provide a more comprehensive understanding of the franchise's financial standing.