What were the total royalties Crawlspace Medic received for the year ended December 31, 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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STATEMENTS OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY CSM FRANCHISE GROUP, LLC
| For the Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2023 2022 | 2021 | |||||
| Revenues | ||||||
| Royalties | $ | 1,572,312 | $ | 1,090,613 | $ | 795,900 |
| Franchise fees | 53,100 | 50,000 | 455,000 | |||
| Brand advertising fee | 221,786 | 185,150 | 94,219 | |||
| Technology and other fees | 206,644 | 67,260 | 45,725 | |||
| Management fees | - | 19,455 | 24,000 | |||
| Other income | 13,050 | 6,000 | 22,465 | |||
| Total Revenues | 2,066,892 | 1,418,478 | 1,437,309 | |||
| Operating Expenses | ||||||
| General and administrative | 574,795 | 354,026 | 283,546 | |||
| Advertising and marketing | 217,401 | 34,488 | 8,533 | |||
| Leased administrative | 35,549 | 116,490 | 146,120 | |||
| Legal and professional services | 89,364 | 105,027 | 45,050 | |||
| Total Operating Expenses | 917,109 | 610,031 | 483,249 | |||
| INCOME FROM OPERATIONS | 1,149,783 | 808,447 | 954,060 | |||
| Member's equity at beginning of year | 216,112 | 460,495 | 147,585 | |||
| Member's withdrawals | (1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the total royalties received for the year ended December 31, 2022, were $1,090,613. This figure represents the income Crawlspace Medic earned from its franchisees based on a percentage of their gross sales. Royalties are a primary revenue stream for franchisors like Crawlspace Medic, as they reflect the ongoing support and brand value provided to franchisees.
In addition to royalties from franchisees, Crawlspace Medic also receives royalties from its corporate locations. In 2022, royalties received from corporate locations totaled $385,484. It is important to note that while corporate stores pay royalties, they are exempt from the initial franchise fee, which is a benefit not extended to franchisees.
The royalties from both franchisees and corporate locations contribute to Crawlspace Medic's overall financial health and ability to support its franchise network. Prospective franchisees should consider the royalty structure and how it aligns with their business goals and revenue projections. Understanding the franchisor's revenue streams can provide insights into the sustainability and potential growth of the franchise system.