What was the cash and cash equivalents at the beginning of 2022 for Crawlspace Medic?
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, the cash and cash equivalents at the beginning of 2022 were $173,230. This figure represents the amount of readily available funds the company had at the start of the year, which can be used for operational expenses, investments, or other business activities.
For a prospective Crawlspace Medic franchisee, understanding the franchisor's cash position is crucial. It provides insight into the financial stability and liquidity of the company. A healthy cash balance suggests that the franchisor is capable of supporting its franchisees and investing in the growth of the brand.
However, it is important to note that this is just one data point in assessing the financial health of Crawlspace Medic. A potential franchisee should also review the company's revenue, expenses, and overall financial performance to get a comprehensive understanding of its financial condition. Additionally, it would be prudent to compare these figures with those of other franchise systems in the same industry to benchmark Crawlspace Medic's performance.