What was the member's equity at the beginning of 2023 for Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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STATEMENTS OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY CSM FRANCHISE GROUP, LLC
| For the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 2022 | 2021 | |||||
| Revenues | ||||||
| Royalties | $ | 1,572,312 | $ | 1,090,613 | $ | 795,900 |
| Franchise fees | 53,100 | 50,000 | 455,000 | |||
| Brand advertising fee | 221,786 | 185,150 | 94,219 | |||
| Technology and other fees | 206,644 | 67,260 | 45,725 | |||
| Management fees | - | 19,455 | 24,000 | |||
| Other income | 13,050 | 6,000 | 22,465 | |||
| Total Revenues | 2,066,892 | 1,418,478 | 1,437,309 | |||
| Operating Expenses | ||||||
| General and administrative | 574,795 | 354,026 | 283,546 | |||
| Advertising and marketing | 217,401 | 34,488 | 8,533 | |||
| Leased administrative | 35,549 | 116,490 | 146,120 | |||
| Legal and professional services | 89,364 | 105,027 | 45,050 | |||
| Total Operating Expenses | 917,109 | 610,031 | 483,249 | |||
| INCOME FROM OPERATIONS | 1,149,783 | 808,447 | 954,060 | |||
| Member's equity at beginning of year | 216,112 | 460,495 | 147,585 | |||
| Member's withdrawals | (1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the member's equity at the beginning of 2023 was $216,112. This figure represents the net worth attributable to the members of CSM Franchise Group, LLC at the start of the 2023 fiscal year, which is an important indicator of the company's financial health and stability.
For a prospective Crawlspace Medic franchisee, understanding the franchisor's equity is crucial. A higher member's equity generally suggests a more financially stable franchisor, which can provide reassurance about the franchisor's ability to support its franchisees. It also reflects the accumulated profits and investments in the company over time.
However, it's also important to consider factors such as member's withdrawals, which can impact the equity. In 2023, Crawlspace Medic reported member's withdrawals of $1,029,271. Significant withdrawals could indicate reinvestment in the company or distribution of profits to members, but it's essential to understand the reasons behind these withdrawals to assess their impact on the company's long-term financial position.
The FDD also shows the member's equity at the end of 2023 was $336,624. Reviewing these figures over several years, as presented in the provided table, allows potential franchisees to identify trends and assess the overall financial trajectory of Crawlspace Medic. This information, combined with other financial metrics and qualitative factors, can help in making an informed decision about investing in a Crawlspace Medic franchise.