What was the total amount of royalty fees receivable by Crawlspace Medic in 2020?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total royalty fees receivable as of December 31, 2020, was $13,890. This figure represents the outstanding royalty payments owed to Crawlspace Medic by its franchisees at the end of that year. Royalty fees receivable are an important indicator of the financial health of a franchise system, as they reflect the ability of franchisees to generate revenue and meet their financial obligations to the franchisor.

For a prospective Crawlspace Medic franchisee, this information provides insight into the historical financial performance of existing franchisees. While a receivable is not the same as actual cash in hand, Crawlspace Medic management estimates that all amounts are collectible at the end of the noted years. This indicates that Crawlspace Medic has been able to effectively collect royalty payments from its franchisees.

It's important to note that royalty fees receivable can fluctuate from year to year due to various factors, such as changes in the number of franchisees, economic conditions, and the performance of individual franchise locations. A prospective franchisee should consider these factors when evaluating the financial performance of Crawlspace Medic and its franchisees. Reviewing trends over multiple years, like 2021 and 2022, alongside the number of operating units can provide a more comprehensive understanding.

In addition to the royalty fees receivable from franchisees, Crawlspace Medic also receives royalties from its corporate locations. In 2020, royalties received from corporate locations totaled $89,656. This provides another source of revenue for Crawlspace Medic, but is separate from the franchisee royalty fees receivable.