What was the amount due from related party for Engineering For Kids in 2024?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ertain internal control related matters that we identified during the audit.
March 31, 2025
ENGINEERING FOR KIDS INTERNATIONAL, LLC BALANCE SHEETS DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 21,735 | $ | 117,655 | $ | 31,036 |
| Accounts receivable, net of allowance for credit losses | 58,661 | 45,523 | 62,234 | |||
| Due from related party | 14,968 | - | - | |||
| Prepaid expenses | 2,575 | 6,200 | 6,311 | |||
| Total current as |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the amount due from a related party as of December 31, 2024, was $14,968. This figure represents the balance that Engineering For Kids was owed by its parent company or an affiliated entity at the end of the fiscal year.
This "due from related party" balance is listed as an asset on Engineering For Kids' balance sheet. It reflects transactions between Engineering For Kids and its parent company, LaunchLife USA, Inc. Understanding these related-party transactions is crucial for prospective franchisees, as it sheds light on the financial interactions between Engineering For Kids and its parent company.
For a prospective franchisee, this information highlights the importance of understanding the financial relationship between Engineering For Kids and its parent company. It's essential to assess how these related-party transactions might affect the financial stability and operations of the franchise system. Further due diligence into these relationships would be beneficial for any potential franchisee.