What was the amount of member's withdrawals for Crawlspace Medic in 2021?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
,112 | $ | 460,495 | $ 147,585 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ 808,447 | $ 954,060 | $ 218,669 |
| Net income | |||
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | 280,000 | (275,000) | (5,000) |
| (Increase) decrease in royalty fees receivable | 9,972 | 3,918 | (9,590) |
| (Increase) decrease in due from related parties | 9,599 | (9,599) | - |
| (Increase) decrease in prepaid expense | 6,918 | (12,168) | - |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | (11,088) | 22,144 | 630 |
| Decrease in due to related party | (1,444) | (20,676) | - |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,102,404 | 662,679 | 204,709 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | (21,460) | (53,629) |
| Members' withdrawals | (1,052,830) | (641,150) | (22,222) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,052,830) | (662,610) | (75,851) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 49,574 | 69 | 128,858 |
| Cash and cash equivalents at beginning of year | 173,299 | 173,230 | 44,372 |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 222,873 | $ 173,299 | $ 173,230 |
NOTE
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, member's withdrawals in 2021 totaled $641,150. This figure represents the amount of money taken out of the company by its members during that year.
Member's withdrawals can be an important indicator of the financial management and stability of Crawlspace Medic. High withdrawals could potentially reduce the capital available for business operations, investments, or to support franchisees.
A prospective Crawlspace Medic franchisee should consider this figure in the context of the company's overall financial performance, including revenues, expenses, and net income, to assess the sustainability of the withdrawals and their potential impact on the franchise system. Reviewing trends in member's withdrawals over several years, as presented in the FDD, can provide a more comprehensive understanding of this aspect of Crawlspace Medic's financial practices.