What was the member's equity at the end of the year 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 end of 2023 was $336,624. This figure represents the accumulated capital and retained earnings belonging to the members or owners of CSM Franchise Group, LLC, after accounting for all revenues, expenses, and withdrawals during the year. It is a key indicator of the company's financial health and net worth.
For a prospective Crawlspace Medic franchisee, this number provides insight into the financial stability of the franchisor. A higher member's equity generally suggests a stronger financial foundation, which can be reassuring. However, it's important to consider this figure in conjunction with other financial metrics, such as revenue, expenses, and cash flow, to get a comprehensive understanding of the company's performance.
Additionally, the FDD reveals that the member's equity at the beginning of 2023 was $216,112, and during the year, members withdrew $1,029,271. This indicates that while the company generated income from operations of $1,149,783, a significant portion was distributed to the members, impacting the final equity figure. Potential franchisees should investigate the reasons behind these withdrawals and their potential impact on the company's future financial stability and support for franchisees.