factual

Are the financial statements for Engineering For Kids for the company or the franchisee?

Engineering_For_Kids Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT E FINANCIAL STATEMENTS

ENGINEERING FOR KIDS INTERNATIONAL, LLC REPORT ON FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)

What This Means (2025 FDD)

According to the 2025 Engineering For Kids Franchise Disclosure Document, the financial statements provided are for Engineering For Kids International, LLC, the franchisor. This is explicitly stated in Exhibit E, which is titled "FINANCIAL STATEMENTS ENGINEERING FOR KIDS INTERNATIONAL, LLC REPORT ON FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022".

These financial statements reflect the financial performance and position of the franchisor, not of individual franchisees. This information is crucial for potential franchisees as it provides insight into the franchisor's financial stability, revenue trends, and overall financial health. Understanding the franchisor's financial standing can help franchisees assess the long-term viability and support they can expect from Engineering For Kids.

Furthermore, Note 4 within Item 22 discusses related party transactions, including royalty fees paid by Engineering For Kids International, LLC to its parent company, LaunchLife USA, Inc., for the use of franchise rights. These fees amounted to $83,700 in 2024, $78,400 in 2023, and $36,000 in 2022. Such details are essential for prospective franchisees to understand the financial relationships and obligations of the franchisor, which can indirectly affect the support and resources available to franchisees.

In summary, the FDD includes the franchisor's financial statements, offering valuable insights into the financial operations of Engineering For Kids International, LLC. A prospective franchisee should carefully review these statements and related notes to make an informed decision about investing in an Engineering For Kids franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.