What were the total liabilities for Crawlspace Medic as of December 31, 2021?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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AUDITED FINANCIAL STATEMENTS
BALANCE SHEETS CSM FRANCHISE GROUP, LLC
| 2022 | December 31, 2021 | 2020 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | $ 222,873 | $ 173,299 | $ 173,230 |
| Franchisee fees receivable | - | 280,000 | 5,000 |
| Royalty fees receivable | - | 9,972 | 13,890 |
| Due from related parties | - | 9,599 | - |
| Prepaid expense | 5,250 | 12,168 | - |
| TOTAL ASSETS | $ 228,123 | $ 485,038 | $ 192,120 |
| LIABILITIES AND MEMBERS' EQUITY | |||
| Current Liabilities | |||
| Accounts payable and accrued expenses | $ 12,011 | $ 23,099 | $ 955 |
| Due to related party | - | 1,444 | 43,580 |
| TOTAL LIABILITIES | 12,011 | 24,543 | 44,535 |
| Members |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the company's total liabilities as of December 31, 2021, were $24,543. This figure represents the sum of current liabilities, including accounts payable, accrued expenses, and amounts due to related parties. Understanding the liabilities of a franchisor like Crawlspace Medic is crucial for potential franchisees as it provides insight into the company's financial obligations and overall financial health.
A prospective franchisee should consider the franchisor's liabilities in relation to its assets and equity. A high level of liabilities compared to assets might indicate financial strain, while a lower level could suggest better financial stability. In Crawlspace Medic's case, the liabilities should be viewed in the context of the company's total assets ($485,038) and members' equity ($460,495) for the same period.
It is also important to note the specific types of liabilities Crawlspace Medic has. As of December 31, 2021, these included accounts payable and accrued expenses of $23,099 and amounts due to related parties totaling $1,444. These figures can give a potential franchisee a clearer picture of the company's short-term obligations and its relationships with other entities. Reviewing these liabilities in conjunction with other financial metrics can help a franchisee assess the financial risk and stability of investing in a Crawlspace Medic franchise.