What was the amount of members' withdrawals from Crawlspace Medic 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 in 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 stability of Crawlspace Medic.
Analyzing members' withdrawals in conjunction with net income and overall cash flow can offer a clearer picture of the company's financial health. For instance, a high withdrawal amount relative to net income might suggest that the company's profits are being heavily distributed, which could impact its ability to reinvest in growth or manage unforeseen expenses. Conversely, a lower withdrawal amount might indicate a more conservative approach to financial management.
It's also useful to compare these withdrawals over several years to identify any trends. In 2021, members' withdrawals were $641,150, and in 2020, they were $22,222. The significant increase in withdrawals from 2020 to 2022 could be due to various factors, such as changes in company ownership, strategic decisions regarding profit distribution, or specific investment needs of the members. Understanding the reasons behind these fluctuations is crucial for assessing the long-term financial prospects of Crawlspace Medic.
Prospective franchisees should discuss these figures with Crawlspace Medic to understand the context behind the withdrawals and how they might affect the franchisor's ability to support its franchisees. This due diligence will help in making an informed decision about investing in a Crawlspace Medic franchise.