What was the income from operations for Engineering For Kids in 2022?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ILITIES AND MEMBER'S EQUITY | $ | 138,356 | $ | 218,424 | $ | 119,691 |
ENGINEERING FOR KIDS INTERNATIONAL, LLC STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| REVENUE | ||||||
| Royalty fees | $ 235,010 | $ | 264,890 | $ | 233,947 | |
| Brand fees | 44,888 | 52,752 | 49,183 | |||
| 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 | 36,000 | |||
| Salaries and wages | 87,156 | 69,961 | 64,974 | |||
| Marketing and advertising | 15,397 | 53,981 | 72,488 | |||
| Franchisor marketing expense | 51,070 | 46,511 | 33,266 | |||
| Office | 44,342 | 32,211 | 21,614 | |||
| Consulting fees | 21,426 | 29,607 | 29,870 | |||
| Professional and legal fees | 51,589 | 20,265 | 40,483 | |||
| Travel | 9,801 | 12,349 | 6,622 | |||
| Credit loss expense | 1,740 | 6,953 | 10,739 | |||
| Bank charges | 4,685 | 2,405 | 2,037 | |||
| Amortization | 10,437 | - | 2,235 | |||
| TOTAL OPERATING EXPENSES | 381,343 | 352,643 | 320,328 | |||
| Income from oper |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the income from operations in 2022 was $58,427. This figure represents the company's earnings before interest and taxes, calculated by subtracting total operating expenses from total revenue. It provides a view of the core profitability of Engineering For Kids' business operations during that year.
For a prospective franchisee, understanding the franchisor's income from operations can offer insights into the financial health and stability of the company. A consistently positive income from operations suggests that the franchisor is managing its expenses effectively and generating sufficient revenue to cover its costs. This can be an important factor in assessing the overall viability and potential success of an Engineering For Kids franchise.
However, it's important to consider this figure in the context of other financial metrics and industry benchmarks. Comparing Engineering For Kids' income from operations to previous years and to similar franchises can provide a more comprehensive understanding of its financial performance. Additionally, prospective franchisees should investigate the specific factors that contributed to the income from operations in 2022, such as revenue streams, expense categories, and any significant events or changes that may have impacted the company's financial results.
It is also important to note that the net income for Engineering For Kids in 2022 was $56,260. Net income is calculated after all expenses and other income items are accounted for. Reviewing both the income from operations and net income can provide a more complete picture of the financial performance of Engineering For Kids.