What were the total Crawlspace Medic royalties for the year ended December 31, 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 | |||||
|---|---|---|---|---|---|
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 for the year ended December 31, 2020, were $384,476. This figure represents the income Crawlspace Medic received from its franchisees based on a percentage of their gross sales. Royalties are a primary revenue stream for franchisors like Crawlspace Medic, as franchisees are contractually obligated to pay ongoing royalties as a fee for using the Crawlspace Medic brand name, operating system, and ongoing support.
In addition to royalties from franchisees, Crawlspace Medic also earns royalties from its corporate locations. The royalties received from corporate locations as of December 31, 2020, amounted to $89,656. These royalties are collected based on the monthly sales of the corporate locations and are subject to the same contractual obligations as those of the franchisees. However, the corporate stores are exempt from the initial franchise fee.
It is important to note that these figures reflect only the royalties received by Crawlspace Medic and do not include other potential revenue streams such as franchise fees, brand advertising fees, technology fees, or other income. A prospective franchisee should consider these royalty figures in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of Crawlspace Medic's financial performance and revenue model.