What were the total operating expenses for Crawlspace Medic in 2020?
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 | 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 total operating expenses for the company in 2020 were $338,957. This figure encompasses various costs associated with running the Crawlspace Medic business, including general and administrative expenses, leased administrative costs, legal and professional services, and advertising and marketing expenses. These expenses are crucial for maintaining the company's operations and supporting its franchisees.
For a prospective Crawlspace Medic franchisee, understanding the operating expenses is essential for financial planning. The $338,957 figure from 2020 provides a baseline for estimating potential expenses in future years, although it's important to consider that these costs can fluctuate based on various factors such as economic conditions, marketing strategies, and administrative overhead. Reviewing these expenses can help a franchisee anticipate the costs involved in running the franchise system.
It's also worth noting the specific categories that make up the total operating expenses. In 2020, these included $76,890 in general and administrative expenses, $194,930 in leased administrative costs, $24,788 for legal and professional services, and $42,349 in advertising and marketing. A prospective franchisee should inquire about the details behind each of these categories to gain a better understanding of where the company's money is being spent and how these expenses might impact their own franchise operations. Understanding these costs can help a franchisee make informed decisions about resource allocation and cost management within their own business.
While the FDD provides historical data on operating expenses, it's important for potential franchisees to conduct their own due diligence and consult with financial advisors to develop realistic financial projections. The expenses from previous years are not a guarantee of future performance, but they offer valuable insights into the cost structure of the Crawlspace Medic franchise system.