What was the amount of retained earnings for Engineering For Kids in 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| (2,167) | |
| NET INCOME | $ 37,219 | $ | 34,933 | $ | 56,260 | |
ENGINEERING FOR KIDS INTERNATIONAL, LLC STATEMENTS OF MEMBER'S EQUITY YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Member Capital | Retained Earnings (Deficit) | Total | |
|---|---|---|---|
| BALANCE, January 1, 2022 | $ 100 | $ (15,900) | $ (15,800) |
| Net income | - | 56,260 | 56,260 |
| BALANCE, December 31, 2022 | 100 | 40,360 | 40,460 |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the retained earnings as of December 31, 2023, was $75,293. This figure represents the accumulated profits of Engineering For Kids that have been retained in the business rather than distributed to the member.
For a prospective franchisee, retained earnings can be an indicator of the financial health and stability of Engineering For Kids. A higher retained earnings balance generally suggests that the company has been profitable and has been able to reinvest earnings back into the business. This could imply that Engineering For Kids is well-managed and has a sustainable business model.
However, it's important to consider retained earnings in conjunction with other financial metrics and information provided in the FDD. Factors such as revenue trends, expenses, and overall financial performance should also be evaluated to gain a comprehensive understanding of the company's financial condition. Additionally, prospective franchisees should consult with a financial advisor to assess the implications of the franchisor's financial statements.
The FDD also includes the retained earnings for the years 2022 and 2024, which were $40,360 and $112,512, respectively. Reviewing these figures alongside the 2023 amount can provide a clearer picture of the trend in Engineering For Kids' retained earnings over time.