What was the decrease in royalty fees receivable for 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, there was an increase of $9,972 in royalty fees receivable in 2022. This figure is derived from the cash flow statement, which tracks changes in operating assets and liabilities. The line item '(Increase) decrease in royalty fees receivable' shows a positive value of $9,972 for the year 2022.
In practical terms, this means that Crawlspace Medic experienced an increase in the amount of royalty fees owed to them by franchisees that had not yet been paid by the end of 2022. This could be due to various factors such as increased sales across franchise locations, delays in franchisee payments, or changes in payment terms.
It's important to note that this figure reflects the change in receivables, not the total royalty revenue. A prospective franchisee should inquire about Crawlspace Medic's typical collection periods for royalty fees and what measures are in place to manage and minimize outstanding receivables. Understanding these dynamics can provide insights into the financial health and operational efficiency of the franchise system.