What were the distributions for Crisp & Green as of December 31, 2021?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| REVENUES | |||
| Royalty Income | $ 3,397,510 | $ 2,426,451 | $ 1,414,976 |
| Marketing Revenue | 977,996 | 689,400 | 394,264 |
| Franchise Sales | 1,465,500 | 1,210,900 | 367,200 |
| Technology Revenue | 323,330 | 162,495 | 64,500 |
| Management Fee Revenue | - | 5,594 | - |
| Total Revenues | 6,164,336 | 4,494,840 | 2,240,940 |
| OPERATING EXPENSES | |||
| Management Fee | 1,045,500 | 500,000 | 500,000 |
| Commission Expense | 308,797 | 296,581 | 3,000 |
| Advertising Expense | 434,782 | - | - |
| Legal Fees | 35,051 | - | - |
| Bank Fees | 8 | - | 143 |
| Total Operating Expenses | 1,824,138 | 796,581 | 503,143 |
| NONOPERATING INCOME | |||
| Other Income | 104,126 | 182,877 | - |
| NET INCOME | $ 4,444,324 | $ 3,881,136 | $ 1,737,797 |
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the distributions as of December 31, 2021, were ($915,859). This figure represents the amount of money distributed from the company to its members or owners during the fiscal year. Understanding these distributions is important for prospective franchisees as it provides insight into how the company manages its finances and shares profits.
Specifically, the statement of member's equity shows how the equity balance changes over time due to net income and distributions. For Crisp & Green, the distributions are subtracted from the sum of the beginning balance and net income to arrive at the ending balance for each year. This is a common practice in financial reporting for limited liability companies (LLCs) and other pass-through entities.
For a potential Crisp & Green franchisee, this information is useful in assessing the financial health and stability of the franchisor. While distributions are a normal part of business operations, significant or inconsistent distributions could raise questions about the company's long-term financial strategy. It is advisable for prospective franchisees to review these figures in the context of overall financial performance and consult with a financial advisor to fully understand the implications.