What was the foreign exchange gain/loss for Engineering For Kids in 2022?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| REVENUE | ||||
| Royalty fees | $ 2 35,010 | $ 2 64,890 | $ 2 33,947 | |
| Brand fees | 44,888 | 52,752 | 4 9,183 | |
| Technology fees | 38,300 | 37,500 | 42,200 | |
| Franchise fees | 90,250 | 34,000 | 51,500 | |
| Late fees | 10,114 | 2,875 | 1,925 | |
| TOTAL REVENUE | 418,562 | 392,017 | 378,755 | |
| OPERATING EXPENSES | ||||
| Royalty and overhead | 83,700 | 78,400 | 3 6,000 | |
| Salaries and wages | 87,156 | 69,961 | 6 4,974 | |
| Marketing and advertising | 15,397 | 53,981 | 7 2,488 | |
| Franchisor marketing expense | 51,070 | 46,511 | 3 3,266 | |
| Office | 44,342 | 32,211 | 2 1,614 | |
| Consulting fees | 21,426 | 29,607 | 2 9,870 | |
| Professional and legal fees | 51,589 | 20,265 | 4 0,483 | |
| Travel | 9,801 | 12,349 | 6 ,622 | |
| Credit loss expense | 1,740 | 6,953 | 1 0,739 | |
| Bank charges | 4,685 | 2,405 | 2 ,037 | |
| Amortization | 10,437 | - | 2 ,235 | |
| TOTAL OPERATING EXPENSES | 381,343 | 352,643 | 320,328 | |
| Income from operations | 3 7,219 | 3 9,374 | 5 8,427 | |
| OTHER INCOME | ||||
| Foreign exchange gain (loss) | - | ( 4,441) | ( 2,167) | |
| NET INCOME | $ 3 7,219 | $ 3 4,933 | $ 5 6,260 |
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 FDD, Engineering For Kids experienced a foreign exchange loss of $2,167 in 2022. This figure is part of the 'Other Income' section in the financial performance data provided in Item 23. This loss represents the net effect of currency fluctuations on the company's financial transactions during that year.
For a prospective franchisee, understanding the franchisor's foreign exchange gains or losses can provide insight into the company's international operations and financial stability. A significant loss could indicate exposure to volatile currency markets, which might indirectly affect franchisees through changes in supply costs or royalty payments. However, in this case, the $2,167 loss appears relatively small compared to the total revenue of $378,755 for the same year, suggesting that foreign exchange fluctuations did not have a major impact on Engineering For Kids's overall financial performance in 2022.
It's important to note that foreign exchange gains or losses are a common aspect of international business and can vary from year to year. Franchisees should consider this information in the context of Engineering For Kids's broader financial performance and international strategy. Further investigation into the company's risk management practices related to foreign exchange could provide additional reassurance.