What were the total Crawlspace Medic franchise fees for the year ended December 31, 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total franchise fees for the year ended December 31, 2021, were $455,000. This figure represents the revenue Crawlspace Medic recognized from franchise fees during that year.
Franchise fees are typically one-time, upfront payments that franchisees make to the franchisor upon signing the franchise agreement. These fees grant the franchisee the right to operate under the Crawlspace Medic brand and utilize its system. The amount can vary significantly depending on the franchise system.
For a prospective Crawlspace Medic franchisee, this number indicates the level of investment new franchisees were making in the system during 2021. It can also be used to gauge the growth and expansion of the Crawlspace Medic franchise network during that period. A significant increase in franchise fees from one year to the next might suggest rapid expansion, while a decrease could indicate slower growth or challenges in attracting new franchisees.
It's important to note that this figure represents the total franchise fees recognized as revenue by Crawlspace Medic, and may not directly correlate with the number of new franchise agreements signed during that specific year due to accounting practices.