What was the total member's equity for Crawlspace Medic in 2020?
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 total members' equity at the end of 2020 was $147,585. This figure represents the net worth of the company attributable to its members or owners at that specific point in time. It is calculated by subtracting total liabilities from total assets. This number is an important indicator of the company's financial health.
For a prospective Crawlspace Medic franchisee, understanding the trend in members' equity can provide insights into the stability and growth of the company. A consistently positive and increasing members' equity generally suggests that the company is profitable and well-managed. Conversely, a declining members' equity might raise concerns about the company's financial performance and its ability to support its franchisees.
It's also important to note the changes in members' equity over time. In Crawlspace Medic's case, the members' equity was $460,495 at the beginning of 2021, decreased by members' withdrawals of $641,150, resulting in an end-of-year equity of $147,585 in 2020. This kind of information helps potential franchisees assess the financial risks and rewards associated with investing in a Crawlspace Medic franchise. Reviewing these figures in conjunction with other financial metrics and industry benchmarks is crucial for making an informed investment decision.