What was the amount of Crawlspace Medic's members' withdrawals in 2022?
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 o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, members' withdrawals for 2022 totaled $1,052,830. This figure reflects the amount of money taken out of the company by its members during that year. This is an important figure for prospective franchisees to consider as it provides insight into the financial management and distribution of profits within the Crawlspace Medic franchise system.
Analyzing members' withdrawals in conjunction with other financial metrics, such as net income and total revenues, can offer a more comprehensive understanding of the company's financial health. For instance, while Crawlspace Medic had a net income of $808,447 in 2022, the members withdrew a larger sum, indicating that the company may have used accumulated equity or other sources to fund these withdrawals.
It is also useful to compare the 2022 withdrawals to those of previous years. In 2021, members' withdrawals were $641,150, and in 2020, they were $22,222. The significant increase in withdrawals in 2022 could signal a change in the company's financial strategy or distribution policy, which prospective franchisees should investigate further to fully understand the implications for their investment.