What was the total amount of royalty fees receivable for Crawlspace Medic as of December 31, 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 amount of royalty fees that Crawlspace Medic was owed but had not yet received from its franchisees. Royalty fees receivable typically consist of royalty fees receivable at year end from the prior month of operations.

For a prospective Crawlspace Medic franchisee, this indicates the scale of outstanding payments the company manages. It's a relatively small amount compared to the cash and cash equivalents, suggesting efficient collection practices. However, it's important to note that these are just the royalty fees receivable and do not reflect the total revenue or financial health of Crawlspace Medic.

The FDD also states that management estimates all royalty fees receivable are collectible at the end of each year, including 2020. This suggests that Crawlspace Medic has confidence in its franchisees' ability to pay and its own collection processes. This is a positive sign for potential franchisees, as it indicates a stable financial relationship between the franchisor and its franchisees.

It is important for potential franchisees to review the complete financial statements and related notes in the FDD to gain a comprehensive understanding of Crawlspace Medic's financial condition and performance. Understanding the receivables, revenue recognition policies, and related party transactions can provide valuable insights into the franchisor's operations and financial stability.