What was the (increase) decrease in franchisee 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 the 2024 Crawlspace Medic Franchise Disclosure Document, there was an increase in franchisee fees receivable of $280,000 in 2022. This figure represents the change in the amount of franchise fees that Crawlspace Medic was owed by its franchisees but had not yet collected as of the end of the year. This increase suggests that Crawlspace Medic may have extended more credit to franchisees or experienced delays in collecting payments during that year.
For a prospective Crawlspace Medic franchisee, this information is relevant because it provides insight into the company's financial management and its relationship with franchisees. A significant increase in franchisee fees receivable could indicate potential cash flow issues for the franchisor, which might affect the level of support and services they can provide. It could also suggest that franchisees are facing difficulties in making timely payments, which could be a sign of broader economic challenges within the Crawlspace Medic system.
It's important to note that this is just one data point, and a comprehensive understanding of Crawlspace Medic's financial health would require analyzing other financial statements and disclosures in the FDD. A prospective franchisee should consider this information in conjunction with other factors, such as the number of new franchises opened, the average revenue of franchisees, and the overall financial stability of the franchisor, before making a decision.