What was the increase or decrease in franchisee 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 o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the franchisee fees receivable decreased by $275,000 in 2021. This figure is part of the changes in operating assets and liabilities reported in the cash flow statement. Franchise fees receivable represents the amount of revenue Crawlspace Medic has earned from franchise fees but has not yet collected in cash.
A decrease in franchisee fees receivable typically suggests that Crawlspace Medic collected more in outstanding franchise fees during 2021 than it recognized as new receivables. This could be due to the timing of when franchise agreements were signed and when payments were received. It is important to note that this is a non-cash transaction, meaning it does not directly impact Crawlspace Medic's cash balance but reflects changes in its accounts receivable.
For a prospective Crawlspace Medic franchisee, this information provides insight into the company's revenue collection trends. Monitoring changes in franchisee fees receivable can help assess the financial health and efficiency of Crawlspace Medic's franchise operations. A consistent decrease might indicate effective collection practices, while a significant increase could signal potential issues in collecting outstanding fees from franchisees.