What was the amount of Crawlspace Medic member's withdrawals for the year ended December 31, 2023?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
24 | $ | 216,112 | $ | 460,495 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2023 | For the Years Ended December 31, 2022 | 2021 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ 1,149,783 | $ 808,447 | $ 954,060 |
| Change in noncash rental assets and liability | (1,167) | - | - |
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | (53,100) | 280,000 | (275,000) |
| Decrease in royalty fees receivable | - | 9,972 | 3,918 |
| (Increase) decrease in due from related parties | - | 9,599 | (9,599) |
| (Increase) decrease in prepaid expense | (21,437) | 6,918 | (12,168) |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | 4,691 | (11,088) | 22,144 |
| Increase (decrease) in due to related party | 15,096 | (1,444) | (20,676) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,093,866 | 1,102,404 | 662,679 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | - | (21,460) |
| Member's withdrawals | (1,029,271) | (1,052,830) | (641,150) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,029,271) | (1,052,830) | (662,610) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 64,595 | 49,574 | 69 |
| Cash and cash equivalents at beginning of year | 22 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the member's withdrawals for the year ended December 31, 2023, totaled $1,029,271. This figure represents the amount of money the members of Crawlspace Medic took out of the company during that fiscal year.
For a prospective franchisee, this information provides insight into how the company's members are compensated and how profits are distributed. High member withdrawals could indicate a profitable business, but it's essential to consider this figure in relation to the company's overall financial performance, including revenues, expenses, and net income. A sustainable business model should balance member compensation with reinvestment in the company's growth and stability.
It's also worth noting the trend in member's withdrawals over the years. In 2022, the withdrawals were $1,052,830, and in 2021, they amounted to $641,150. This data can help a potential franchisee understand the historical pattern of profit distribution within Crawlspace Medic. Reviewing these figures in conjunction with the company's financial statements can offer a more comprehensive understanding of the financial health and stability of the franchise system.