What was the total revenue Crawlspace Medic generated from brand advertising fees in 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 revenue generated from brand advertising fees in 2021 was $94,219. This figure represents the income Crawlspace Medic received specifically from advertising fees paid by franchisees. These fees are typically used to fund marketing and advertising campaigns at the national or regional level, benefiting all franchisees by increasing brand awareness and generating leads.
For a prospective Crawlspace Medic franchisee, this information is relevant for understanding the scale of the brand's advertising efforts and the financial commitment from franchisees that supports these activities. The brand advertising fee is separate from any local marketing requirements, so franchisees should budget for both when planning their expenses. It's also worth noting the trend in advertising fee revenue over the years; an increase could indicate a growing franchise system and potentially more robust marketing initiatives.
Franchisees should inquire about how these advertising funds are used, the types of marketing campaigns conducted, and the results of those campaigns. Understanding the ROI on these fees can help franchisees assess the value they receive from their contribution to the brand advertising fund. Additionally, it's important to understand if the advertising fee is a fixed amount or a percentage of gross sales, as this will impact the franchisee's financial planning.