What was the Crawlspace Medic member's equity at the beginning of the year 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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STATEMENTS OF OPERATIONS AND CHANGES IN MEMBERS' EQUITY (DEFICIT) CSM FRANCHISE GROUP, LLC
| For the Years Ended | |||||
|---|---|---|---|---|---|
| 2022 | December 31, 2021 | 2020 | |||
| Revenues | |||||
| Royalties | $ | 1,090,613 | $ | 795,900 | $ 384,476 |
| Franchise fees | 50,000 | 455,000 | 146,500 | ||
| Brand advertising fee | 185,150 | 94,219 | - | ||
| Technology and other fees | 67,260 | 45,725 | 20,650 | ||
| Management fees | 19,455 | 24,000 | 6,000 | ||
| Other income | 6,000 | 22,465 | - | ||
| Total Revenues | 1,418,478 | 1,437,309 | 557,626 | ||
| Operating Expenses | |||||
| General and administrative | 354,026 | 283,546 | 76,890 | ||
| Leased administrative | 116,490 | 146,120 | 194,930 | ||
| Legal and professional services | 105,027 | 45,050 | 24,788 | ||
| Advertising and marketing | 34,488 | 8,533 | 42,349 | ||
| Total Operating Expenses | 610,031 | 483,249 | 338,957 | ||
| INCOME FROM OPERATIONS | 808,447 | 954,060 | 218,669 | ||
| Members' equity (deficit) at beginning of year | 460,495 | 147,585 | (48,862) | ||
| Members' withdrawals |
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 2022 was $460,495. This figure represents the net worth of the company attributable to its members at the start of the fiscal year. It's a key indicator of the company's financial health and stability.
For a prospective Crawlspace Medic franchisee, understanding the member's equity is crucial because it reflects the financial foundation of the franchisor. A higher equity suggests a more stable and reliable franchisor, which can be an important consideration when investing in a franchise. It also provides insight into how the company has managed its finances in the past and its ability to support its franchisees.
However, it's important to note that this figure is just one aspect of the overall financial picture. Franchisees should also consider other factors such as revenue, expenses, and cash flow to get a comprehensive understanding of the franchisor's financial performance. Additionally, it's advisable to consult with a financial advisor to assess the potential risks and rewards of investing in a Crawlspace Medic franchise.
It is also important to note that the members withdrew $1,052,830 from their equity in 2022, resulting in an end-of-year equity of $216,112. This highlights the importance of looking at the complete financial picture, including withdrawals, to understand the full context of the equity figures.