What was the amount due to/from related party for Engineering For Kids in 2022?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ny pays a royalty fee to LaunchLife USA, Inc. for the use of the franchise rights. During the years ended December 31, 2024, 2023, and 2022 royalty fees were $83,700, $78,400, and $36,000, respectively.
During the course of its operations, the Company has transactio
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the amount due to/from related party is detailed in the balance sheets. Specifically, the balance sheet as of December 31, 2022, shows the amounts due to related parties. Amounts due to its parent company were $51,166 at December 31, 2022.
This indicates Engineering For Kids owed its parent company $51,166 as of the end of 2022. This liability represents a financial obligation that Engineering For Kids had to its parent company, LaunchLife USA, Inc., at that time. Understanding these related-party transactions is crucial for prospective franchisees as it sheds light on the financial relationships and obligations within the Engineering For Kids franchise system.
Reviewing the balance sheets for 2023 and 2024, we can see how this amount changed over time. Amounts due to its parent company were $115,040 at December 31, 2023. Amounts due from the parent company were $14,968 at December 31, 2024. These figures provide a more complete picture of the financial interactions between Engineering For Kids and its parent company, allowing potential franchisees to assess the stability and financial health of the franchise system.