What were the member's withdrawals for Crawlspace Medic for the year ended December 31, 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, member's withdrawals for the year ended December 31, 2022, were $(1,052,830). This figure represents the amount of money the members of CSM Franchise Group, LLC, took out of the company during that fiscal year. This is an important figure for prospective franchisees to consider, as it provides insight into how the company's profits are distributed.
For comparison, the member's withdrawals for the years ended December 31, 2021, and 2020 were $(641,150) and $(22,222), respectively. The significant increase in withdrawals in 2022 could be due to a variety of factors, such as increased profitability or changes in the ownership structure of the company. A potential franchisee should investigate the reasons behind this change to fully understand the financial health and practices of Crawlspace Medic.
Understanding member's withdrawals in relation to net income and overall equity can help a franchisee assess the long-term financial sustainability of the franchise. It is also important to note that these withdrawals are distinct from other payments made to related parties, such as Bloom Management, LLC, for management and leased employee services, which are detailed separately in the FDD.