What was the increase or decrease in due to related party 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, there was a decrease in due to related party of $20,676 in 2021. This figure is part of the cash flow from operating activities. This indicates the amount Crawlspace Medic owed to related parties decreased during that year.
This decrease in 'due to related party' could mean that Crawlspace Medic paid off some of its obligations to entities or individuals with close ties to the company. These related parties could include owners, family members, or other businesses with common ownership. Such transactions are common in many businesses, but it's important for potential franchisees to understand the nature of these relationships and transactions.
For a prospective Crawlspace Medic franchisee, this information provides insight into the company's financial dealings with related parties. It's essential to understand who these related parties are and the terms of any transactions between them and Crawlspace Medic. Reviewing these transactions can help a franchisee assess the financial stability and transparency of the company. It is also important to note that related party transactions are measured at the exchange amount, which is the amount of consideration established by contractual agreement or otherwise agreed to by the related parties. The Company believes that all related party transactions occur at arm's length.