What was the (increase) decrease in due from related parties 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 o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the (increase) decrease in due from related parties in 2021 was ($9,599). This figure reflects the change in the amount owed to or from related parties, such as Crawlspace Medic Holdings, LLC or Bloom Management, LLC, which have common ownership with the company. A negative number indicates a decrease in the amount due from these related parties.
For a prospective Crawlspace Medic franchisee, this indicates the financial interactions Crawlspace Medic has with its related entities. It is important to note that these transactions are stated to occur at arm's length, meaning they should reflect fair market value. The FDD states that Crawlspace Medic believes that all related party transactions occur at arm's length.
Understanding these related-party transactions is crucial for assessing the overall financial health and transparency of Crawlspace Medic. Franchisees should review the complete financial statements and related notes to fully understand the nature and extent of these transactions and how they might impact the franchisor's financial stability and operations.