How much did Crawlspace Medic spend on leased administrative expenses in 2021?
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, the company's leased administrative expenses for the year ending December 31, 2021, totaled $146,120. This figure reflects the costs associated with leasing administrative resources necessary for the franchisor's operations.
For a prospective franchisee, understanding these expenses is crucial as it provides insight into the franchisor's overhead and financial management. While franchisees do not directly pay these expenses, the franchisor's ability to manage costs effectively can impact the overall financial health and stability of the franchise system. High or poorly managed administrative costs could potentially affect the support and services that Crawlspace Medic provides to its franchisees, as well as the long-term sustainability of the franchise model.
It's important for potential franchisees to consider these figures in conjunction with other financial metrics, such as revenue and profitability, to gain a comprehensive understanding of Crawlspace Medic's financial performance. Additionally, comparing these expenses to industry benchmarks can help assess whether Crawlspace Medic's administrative costs are reasonable and competitive.