What was the (increase) 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, the (increase) decrease in royalty fees receivable in 2022 was $9,972. This figure represents the change in the amount of royalty fees that Crawlspace Medic was owed but had not yet received from its franchisees or corporate locations at the end of 2022, compared to the end of the previous year. A positive number indicates an increase in outstanding royalty fees, while a negative number would indicate a decrease.
In practical terms, this means that Crawlspace Medic had $9,972 more in outstanding royalty payments at the end of 2022 than it did at the end of 2021. This could be due to a variety of factors, such as increased sales across the franchise system, changes in payment terms, or delays in franchisees making their royalty payments. It's important to note that this figure does not represent the total amount of royalty fees collected by Crawlspace Medic during the year, but rather the change in the outstanding balance.
For a prospective franchisee, this information can be useful in understanding the financial health and operational efficiency of Crawlspace Medic. While a small increase in royalty fees receivable may not be a cause for concern, a large or consistent increase could indicate potential issues with franchisee profitability or payment compliance. It is also important to note that Crawlspace Medic management estimates that all royalty fees are collectible at the end of 2023, 2022, and 2021. This indicates that they do not anticipate any issues with collecting the outstanding balances.