What was the decrease in royalty fees receivable 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 A -- NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Activities
CSM Franchise G
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the decrease in royalty fees receivable in 2021 was $3,918. This figure represents the change in the amount of royalty fees that Crawlspace Medic was owed but had not yet collected from its franchisees.
A decrease in royalty fees receivable could suggest a few things. It might indicate that franchisees are paying their royalties more promptly, or it could reflect a change in the overall royalty revenue due to factors like sales performance or the number of active franchise locations.
For a prospective Crawlspace Medic franchisee, this information provides insight into the company's financial operations and its relationship with franchisees regarding royalty payments. Monitoring trends in royalty fees receivable can help assess the financial health of the franchise system and the efficiency of its revenue collection processes.