What was the net income for Crisp & Green in 2021?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Revenue | 7,412,300 | 8,175,200 | 4,496,300 | | | | | Total Liabilities | 7,446,748 | 8,177,336 | 4,496,300 | | | MEMBER'S EQUITY | 2,871,756 | 2,937,929 | 2,027,811 | | | | | Total Liabilities and Member's Equity | $ 1 0,318,504 | $ 1 1,115,265 | $ 6,524,111 | | to exercise or exert control over your decisions or day-to-day operations of your business,
| 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 | Total Revenues | 6,164,336 | - 4,494,840 | 5,594 | 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 |
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the company's net income for the year ending December 31, 2021, was $1,737,797. This figure represents the earnings of Crisp & Green Franchising LLC after deducting all operating expenses and accounting for non-operating income. This information is derived from the company's audited financial statements, which are included in the FDD as Exhibit G. These statements provide a detailed overview of the company's financial performance over the past three years, offering prospective franchisees insight into the financial health of the franchisor.
Specifically, the net income is calculated by subtracting the total operating expenses from the total revenues, and then factoring in any non-operating income. For 2021, Crisp & Green's total revenues amounted to $2,240,940, while total operating expenses were $503,143. There was no non-operating income reported for that year. This net income figure is a key indicator of the company's profitability and can be used to assess the financial stability of the franchise system.
It's important for potential franchisees to review these financial statements carefully, as they provide a historical perspective on Crisp & Green's financial performance. While past performance is not necessarily indicative of future results, it can offer valuable insights into the company's ability to generate revenue and manage expenses. Additionally, comparing the net income across the three years (2021, 2022, and 2023) can reveal trends in the company's financial growth and stability. A prospective franchisee should consult with a financial advisor to fully understand the implications of these financial statements and how they might impact their investment in a Crisp & Green franchise.