What was the amount of Crawlspace Medic's brand advertising fee revenue in 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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STATEMENTS OF OPERATIONS AND CHANGES IN MEMBERS' EQUITY (DEFICIT) CSM FRANCHISE GROUP, LLC
| For the Years Ended | |||||
|---|---|---|---|---|---|
| 2022 | December 31, 2021 | 2020 | |||
| Revenues | |||||
| Royalties | $ | 1,090,613 | $ | 795,900 | $ 384,476 |
| Franchise fees | 50,000 | 455,000 | 146,500 | ||
| Brand advertising fee | 185,150 | 94,219 | - | ||
| Technology and other fees | 67,260 | 45,725 | 20,650 | ||
| Management fees | 19,455 | 24,000 | 6,000 | ||
| Other income | 6,000 | 22,465 | - | ||
| Total Revenues | 1,418,478 | 1,437,309 | 557,626 | ||
| Operating Expenses | |||||
| General and administrative | 354,026 | 283,546 | 76,890 | ||
| Leased administrative | 116,490 | 146,120 | 194,930 | ||
| Legal and professional services | 105,027 | 45,050 | 24,788 | ||
| Advertising and marketing | 34,488 | 8,533 | 42,349 | ||
| Total Operating Expenses | 610,031 | 483,249 | 338,957 | ||
| INCOME FROM OPERATIONS | 808,447 | 954,060 | 218,669 | ||
| Members' equity (deficit) at beginning of year | 460,495 | 147,585 | (48,862) | ||
| Members' withdrawals |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the brand advertising fee revenue for the year 2022 was $185,150. This revenue is collected by the franchisor and is typically used to fund marketing and advertising efforts for the Crawlspace Medic brand as a whole. These efforts can include online advertising, traditional media campaigns, and other promotional activities designed to increase brand awareness and generate leads for franchisees.
For a prospective Crawlspace Medic franchisee, understanding the brand advertising fee is crucial because it represents a mandatory contribution to the overall marketing strategy of the franchise system. While the franchisee benefits from the increased brand recognition and marketing efforts, they also need to factor this fee into their operating budget. The effectiveness of these advertising efforts in generating leads and driving revenue will directly impact the franchisee's business performance.
It's also worth noting the trend in brand advertising fee revenue over the years. In 2021, the brand advertising fee was $94,219, and in 2022, it increased to $185,150. Analyzing these figures helps potential franchisees understand the franchisor's investment in marketing and advertising and how it has changed over time. A significant increase could indicate a more aggressive marketing strategy, which could be beneficial for franchisees.