What was the total amount of Crisp & Green's royalty income in 2021?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
11 | | LIABILITIES AND MEMBER'S EQUITY | | | | | CURRENT LIABILITIES | $ 34,448 | $ 2,136 | $ - | | Accounts Payable | | | | | LONG TERM LIABILITIES | 7,412,300 | 8,175,200 | 4,496,300 | | Deferred Revenue | | | | | 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 | $ 10,318,504 | $ 11,115,265 | $ 6,524,111 |
CRISP & GREEN FRANCHISING LLC STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021
| 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 |
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 royalty income for the year 2021 was $1,414,976. This figure represents the income Crisp & Green Franchising LLC received from its franchisees based on a percentage of their sales. Royalty income is a crucial revenue stream for the franchisor, as it directly reflects the performance and growth of the franchise system.
For a prospective Crisp & Green franchisee, understanding the franchisor's royalty income trend is important. The increase in royalty income from 2021 to 2022 and then again to 2023 suggests a growing and healthy franchise system. This growth could be attributed to an increase in the number of franchise locations, higher sales volume at existing locations, or a combination of both. A potential franchisee should investigate the factors driving this revenue growth to assess the long-term viability and potential of the franchise.
Reviewing the franchisor's financial statements, including royalty income, is a standard practice in franchise due diligence. It provides insight into the franchisor's financial stability and the overall health of the franchise network. This information, combined with other factors such as brand recognition, market trends, and the level of support provided to franchisees, can help a prospective franchisee make an informed decision about investing in a Crisp & Green franchise.