What was the total income from operations for Crawlspace Medic in 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ge_156_Picture_0.jpeg)
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 income from operations for the year 2022 was $808,447. This figure represents the company's earnings before interest and taxes, calculated by subtracting total operating expenses from total revenues. For a prospective franchisee, this indicates the franchisor's profitability from its core business activities during that period.
Specifically, Crawlspace Medic's total revenues for 2022 amounted to $1,418,478, which included royalties of $1,090,613, franchise fees of $50,000, brand advertising fees of $185,150, technology and other fees of $67,260, management fees of $19,455, and other income of $6,000. The total operating expenses for the same year were $610,031, comprising general and administrative expenses of $354,026, leased administrative expenses of $116,490, legal and professional services of $105,027, and advertising and marketing expenses of $34,488.
It's important to note that while this figure provides insight into Crawlspace Medic's operational profitability, it does not reflect the company's overall financial performance, which is also influenced by factors such as member withdrawals. In 2022, member's withdrawals amounted to ($1,052,830), which significantly impacted the member's equity at the end of the year, resulting in $216,112. A potential franchisee should consider these broader financial dynamics when evaluating the franchise opportunity.