What was the net income for Engineering For Kids in 2023?
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 net income for the company in 2023 was $34,933. This figure represents the profit Engineering For Kids International, LLC retained after deducting all operating expenses, royalty and overhead, salaries and wages, marketing and advertising, franchisor marketing expense, office costs, consulting fees, professional and legal fees, travel expenses, credit loss expense, bank charges, and amortization from the total revenue. The total revenue includes royalty fees, brand fees, technology fees, franchise fees, and late fees.
Understanding the net income is crucial for potential franchisees as it provides insight into the financial performance and profitability of Engineering For Kids. A consistent net income indicates stable financial health, which can be a positive sign for prospective franchisees. However, it is essential to consider this figure in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the franchise's financial stability and growth potential.
It's also worth noting that the net income can be influenced by various factors, including changes in revenue, operating expenses, and other income or expenses. For instance, in 2023, Engineering For Kids experienced a foreign exchange loss of $4,441, which would have impacted the overall net income. Therefore, prospective franchisees should analyze the trends and underlying drivers of net income over multiple years to assess the sustainability of the company's financial performance.
Overall, the net income of $34,933 in 2023 provides a snapshot of Engineering For Kids' financial performance during that period. While this figure is essential, potential franchisees should conduct thorough due diligence and consult with financial advisors to evaluate the franchise's financial health and assess the risks and opportunities associated with investing in an Engineering For Kids franchise.