What was the amount of the Parent's contribution to Crisp & Green in exchange for 100% membership interest?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
97, $296,581, and $3,000 for the years ended December 31, 2023, 2022, and 2021, respectively. During the years ended December 31, 2023, 2022, and 2021, the Parent's corporate owned location(s) paid a 7% sales royalty of $174,463, $399,214 and $530,574, respectively, and a 2% marketing fee that totaled $49,847, $114,060 a
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Parent company contributed $250,000 to the Company in exchange for 100% membership interest. This contribution occurred when the membership interest in the Company was issued to the Parent. The document specifies that the membership interest owned by the Parent is the only class of membership interest issued and outstanding as of December 31, 2023, 2022, and 2021.
This indicates the initial capitalization of Crisp & Green Franchising, LLC by its parent company. It establishes the Parent's sole ownership and financial commitment to the franchise system. For a prospective franchisee, this information provides insight into the financial structure and ownership of the franchise company.
It's important to note that this initial contribution may not reflect the current financial standing or equity of the company. Further financial statements and disclosures would be needed to assess the company's current financial health and stability. Franchisees should review the complete financial statements and consult with financial advisors to gain a comprehensive understanding of the franchisor's financial position.