What was the amount of Crawlspace Medic's legal and professional services expenses in 2020?
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 legal and professional services expenses for the year 2020 amounted to $24,788. This figure represents the costs Crawlspace Medic incurred for legal counsel, accounting, and other professional consultations during that fiscal year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the franchisor's operational costs. While franchisees do not directly pay these expenses, they are indicative of the franchisor's investment in maintaining legal compliance and professional standards, which indirectly benefits the franchise system. Higher expenses in this category could suggest a greater commitment to quality control and brand protection.
It's important to note that these expenses can fluctuate from year to year based on various factors, such as litigation, regulatory changes, or strategic business decisions. Therefore, while the $24,788 figure provides a historical benchmark, it may not be indicative of future expenses. A prospective franchisee should consider this figure in conjunction with other financial data and trends to assess the overall financial health and stability of Crawlspace Medic.