|                                             |               |

| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 287,468 | $ 222,873 | $ 173,299 |

NOTE A -- NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities

CSM Franchise Group, LLC (the "Company") was formed as a limited liability company (LLC) in December of 2016. The Company originated in Columbia, South Carolina under the corporate founding business Crawlspace Medic Holdings, LLC ("Crawlspace Medic"). Effective October 1, 2021, the members contributed the ownership of the Company to Home Brands Group, LLC ("Home Brands").

The Company is a franchisor that operates under the trade company name "Crawlspace Medic". The Company began offering franchises on September 15, 2017 as disclosed in the franchise disclosure document. The locations are occupied throughout the United States of America.

Summary of Significant Accounting Policies

Basis of Presentation: The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Revenue Recognition: The Company recognizes revenue when the risks and rewards of ownership have substantively transferred to customers. This condition is normally met when the franchise agreement has been signed or when the goods or services have been delivered.

Cash and Cash Equivalents: The Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company maintains its cash in one bank deposit account which at times may exceed federally insured limits. The account is insured by the Federal Deposit Insurance Corporation at December 31, 2023, 2022, and 2021 up to $250,000. At December 31, 2023, 2022, and 2021 the Company exceeded the amount insured by the Federal Deposit Insurance Corporation by $36,443, $0, and $0, respectively.

Franchisee Fee and Royalty Fees Receivable: Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Management provides for probable, uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Management estimates that all amounts are collectible at December 31, 2023, 2022, and 2021. Royalty fees receivable consist of royalty fees receivable at year end from the prior month of operations. Management estimates that all amounts are collectible at December 31, 2023, 2022, and 2021.

Use of Estimates: The preparation of these financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE A -- NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Con tinued

Income Taxes: The Company is a limited liability company for federal and state income tax purposes. All income tax liabilities and/or benefits of the Company are passed through to the member. As such, no recognition of federal or state income taxes for the Company has been provided in the accompanying financial statements.

Accounting principles generally accepted in the United States of America requires management to evaluate tax positions taken by the Company and recognize a tax liability (or asset) if the Company has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service (IRS).

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)