What was the members' equity at the end of the year 2020 for Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ge_156_Picture_0.jpeg)
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 members' equity at the end of the year 2020 was $147,585. This figure represents the accumulated capital and retained earnings belonging to the members or owners of CSM Franchise Group, LLC at the close of the 2020 fiscal year. It reflects the net worth of the company from an accounting perspective, representing the residual value of assets after deducting liabilities.
For a prospective Crawlspace Medic franchisee, this number provides insight into the financial stability and overall capitalization of the franchise system at that time. While the members' equity at the end of 2020 was $147,585, it's important to note that this value has fluctuated in subsequent years, reaching $460,495 at the end of 2021 and $216,112 at the end of 2022. These changes reflect the impact of net income, member withdrawals, and other capital transactions on the company's equity position.
It is important for potential franchisees to consider these trends in conjunction with other financial metrics and information provided in the FDD to gain a comprehensive understanding of Crawlspace Medic's financial health and performance. Reviewing the complete financial statements, including the balance sheets and income statements for multiple years, will provide a more detailed picture of the company's financial history and trajectory. Additionally, prospective franchisees should seek professional financial advice to properly interpret this data and assess the financial risks and opportunities associated with investing in a Crawlspace Medic franchise.