What were the member's withdrawals for Crawlspace Medic in 2021?
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, member's withdrawals in 2021 totaled $641,150. This figure represents the amount of money taken out of the company by its members during that year. This is an important figure for prospective franchisees to consider, as it provides insight into how the company's profits are distributed.
Member withdrawals can fluctuate year to year depending on the company's financial performance and the members' decisions regarding profit distribution. A high level of member withdrawals could indicate that the company is profitable and that the members are taking advantage of those profits. However, it could also raise concerns about whether sufficient funds are being reinvested back into the business for growth and development.
It's essential for potential Crawlspace Medic franchisees to analyze these trends over several years to gain a comprehensive understanding. Comparing member withdrawals to net income and overall cash flow can provide a clearer picture of the company's financial management and sustainability. Prospective franchisees should also inquire about the franchisor's long-term financial plans and how they balance member distributions with reinvestment in the Crawlspace Medic brand.