How much did Crawlspace Medic collect in management fees in 2022?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the company contracts with Bloom Management, LLC, a third party with common ownership, for management functions. In 2022, Crawlspace Medic paid Bloom Management, LLC $411,298 for leased employee administrative costs. Additionally, Crawlspace Medic paid Bloom Services, LLC $0 for monthly accounting fees in 2022.

These payments to related parties are important for prospective franchisees to understand. It shows the costs Crawlspace Medic incurs for management and administrative services, which are ultimately funded through franchise fees and royalties. The fact that these services are provided by entities with common ownership raises questions about potential conflicts of interest and whether these costs are competitive compared to market rates.

It is typical for franchisors to outsource certain functions, but the related-party aspect warrants closer scrutiny. A potential franchisee should inquire about the specific services provided by Bloom Management and Bloom Services, how their fees are determined, and whether Crawlspace Medic has considered alternative providers. Understanding these relationships is crucial for assessing the overall financial health and transparency of the Crawlspace Medic franchise system.

While the document details payments for leased employee administrative costs and accounting fees, it does not explicitly state whether Crawlspace Medic collects "management fees" from franchisees. A prospective franchisee should clarify with Crawlspace Medic what specific fees franchisees pay that contribute to covering these management and administrative expenses.