What was the amount of Crawlspace Medic's leased administrative expenses in 2021?
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 company's leased administrative expenses in 2021 were $146,120. This figure reflects the costs associated with leasing administrative services or facilities necessary for the franchisor's operations.
For a prospective Crawlspace Medic franchisee, understanding the franchisor's expenses can provide insight into the financial health and stability of the company. While franchisees do not directly pay these leased administrative expenses, the franchisor's ability to manage its costs effectively can impact the support and services it provides to franchisees. Monitoring these expenses over time can also indicate trends in the franchisor's operational efficiency.
It's important to note that leased administrative expenses are just one component of the overall operating expenses for Crawlspace Medic. Reviewing the complete financial statements, including revenue, other expense categories like general and administrative, legal and professional services, and advertising and marketing, will give a more comprehensive picture of the franchisor's financial performance. This information can help potential franchisees assess the financial viability of the franchise system.