What was the member capital for Engineering For Kids in 2022?
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 member capital at the beginning of 2022 was $100. After accounting for net income, the member capital remained at $100 at the end of 2022.
This indicates that Engineering For Kids retained all net income within the business rather than distributing it to members. For a prospective franchisee, this detail provides insight into how the company manages its finances and allocates profits. It's important to note that Engineering For Kids is a single-member LLC, which affects how income taxes are handled.
Understanding the member's equity and how it changes over time can help a potential franchisee assess the financial stability and growth trajectory of Engineering For Kids. Reviewing these figures in conjunction with other financial statements, such as the balance sheets and statements of operations, will provide a more comprehensive view of the company's financial health.